A stock has had returns of 22 percent, 13 percent, 7 percent, −11 percent, −4 percent, and 18 percent over the last six years. What are the arithmetic and geometric returns for the stock?

Suppose you bought 400 shares of stock at an initial price of $53 per share. The stock paid a dividend of $.58 per share during the following year, and the share price at the end of the year was $54.

a. What is the capital gains yield?

b. What is the dividend yield?

c. What is the total rate of return on the investment?

Answer rating: 100% (QA)

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