1. Your stock costs $100 today, pays $5 in dividends at the end of the period, and then sells for $98. What is your rate of return?
2. The interest rate has just increased from 6% to 8%. How many basis points is this?
3. Assume an interest rate of 10% per year. How much would you lose over 5 years if you had to give up interest on the interest-that is, if you received 50% instead of compounded interest?