Problem:
Assume that a stock sold for $1.90 on January 1 and ended the year at a price of $2.50. In addition, the stock paid dividends of $0.20 per share. Calculate the stock's dividend yield, capital gains yield, and total rate of return for the year.
Assume that an individual earned a total return of -5% on a stock this year, earned -40% last year, and earned 30% two years ago. Calculate both the three-year holding period return and the average three year return.