Question: Does your answer change if you keep the stock instead of selling it? Why or why not? 1. Calculating Returns (LOI, CFAT) Suppose you bought

Does your answer change if you keep the stock instead of

Does your answer change if you keep the stock instead of selling it? Why or why not? 1. Calculating Returns (LOI, CFAT) Suppose you bought 100 shares of stock at an initial price of $37 per share. The stock paid a dividend of 5.28 per share during the following year, and the share price at the end of the year was $41. Compute your total dollar return on this investment 2. Calculating Yields (LOI, CEAI) In Problem I, what is the capital gains yield? The dividend yield? What is the total rate of return on the investment? 3. Calculating Returns (LOI, CFAI) Rework Problems 1 and 2 assuming that you buy 500 shares of the stock and the ending share price is $34. 4. Historical Returns (L03) What is the historical rate of return on each of the following invest ments? What is the historical risk premium on these investments? a. Long-term government bonds b. Treasury bills e. Large stocks d. Small stocks

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