1. Eight months ago, you purchased 1,200 shares of stock for $42.20 a share. Today, you sold the shares for $44.40 a share. What is your total dollar return on this investment if you received a dividend of $0.80 a share?
2. Approximately how many years are needed to double a $100 investment when interest rates are 8.75 percent per year? (Round your answer to 2 decimal places.)
3. Stock A cost $30 today. Tomorrow it will cost $60 with probability 50% or $15 with probability 50%. Find the standard deviation of this stock’s daily return.
a. 0.25
b. 0.50
c. 0.75
d. 1.00