# Buy for $100 a security that will pay you $7 in cash and will be worth $106 a year later.

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## Question:

Buy for $100 a security that will pay you $7 in cash and will be worth $106 a year later. The return would be ($7 + $6)/$100.

1. Calculate the yield. Use the following formula:

2. Find the expected return. Use the following formula:

3. Find the standard deviation. Use the following formula:

**Related Book For**

## Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

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