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solve 7&8
7. Return Calculations A particular stock has a dividend yield of 1.7 percent. Last year, the stock price fell from $65 to $5
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Answer #1

7. Return Calculation

Dividend yield (a) = (annual dividend / Stock price)x100 =1.7

Current stock price (b) = $59

Return = (a/100) x stock price = (1.7/100)x$59 = $1.003

8. Geometric returns

=[((1+0.16)×(1−0.19)×(1+0.04)×(1+0.34)×(1+0.22))^(4)]-1

= 5.51

Geometric Average Return: Formula Equation 10.4 GAR = ((1+R,)*(1+R2)x...x (1+R,}-1 Where: R = return in each period T = numb

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