1) The average annual return over the period 1926-2009 for the S&P 500 is 11.2%, and the standard deviation of returns is 20.8%. Based on these numbers, what is a? 95% confidence interval for 2010 returns?
2) GM has a market value of $14 billion of equity and a market value of $6 billion of debt. What are the weights in equity and debt that are used for calculating the WACC?
3) McCoy paid a one-time special dividend of $3.30 on October? 18, 2010. Suppose you bought McCoy stock for $ 47on July 18, 2010, and sold it immediately after the dividend was paid for $63.66. What was your realized return from holding McCoy?