QUESTION $14$

Consider the prices and dividends for the following stock, what is the return of the stock if you sell it right after August

$15,2019.($Hint: Compute the annualized return$)$

Date Price Dividend

June $15,201949\mathrm{.}61$

July $1,2019,58\mathrm{.}623\mathrm{.}28$

July $15,2019,52\mathrm{.}432\mathrm{.}71$

August $1,201969\mathrm{.}81$

August $15,201960\mathrm{.}801\mathrm{.}33$

NOTE: Enter the PERCENTAGE number rounding to two decimals. If your decimal answer is $0\mathrm{.}034576,$ your answer

must be $3\mathrm{.}46.$ DO NOT USE the $\%$ sign.

QUESTION $15$

Higher level of volatility means higher returns with lower risk.

True

False

QUESTION $16$

The risk$-$return tradeoff states that low levels of uncertainty correspond with high expected returns and viceversa

True

False