1. Waterworks has a dividend yield of 5.50%. If its dividend is expected to grow at a constant rate of 2.50%, what must be the expected rate of return on the company’s stock? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Expected rate of return %
2. Over the past five years, Corny Dogs, Inc. shareholders have had returns of 12.77%, 13.78%, 9.31%, 10.61%, and 9.68%, respectively. What is the standard deviation of returns for Corny Dogs’ stock? (Enter your answer as a percent rounded to two decimal places.)