1. What is the dividend yield of a stock that is expected to pay a $3.25 dividend that is currently selling for $67.50 per share?
2. Expected Return Compute the expected return given these three economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast Growth .2 31.6% Slow Growth .5 6.80% Recession .3 -2.80%.
3. What advice should be given to clients who are seeking improved investment returns? Discuss in 50 to 80 words.