Use the approximate yield formula or a financial calculator to rank the following investments according to their expected returns. After ranking the investments based on their approximate yield, describe makes for a good investment?

• Buy a stock for $30 a share, hold it for 3 years, and then sell it for $60 a share (the stock pays annual dividends of $2 a share).

• Buy a security for $40, hold it for 2 years, and then sell it for $100 (current income on this security is zero).

• Buy a 1-year, 5 percent note for $1,000 (assume that the note has a $1,000 par value and that it will be held to maturity).