1. What is the standard deviation of a random variable q with the following probability distribution? (Do not round intermediate calculations. Enter your answer in numbers not in percentage. Round your answer to 4 decimal places.) Value of q Probability 0 0.30 1 0.23 2 0.47
2. Suppose you buy the common stock of ZYX, Inc. at $50 a share today. Assume that the company will pay $0.50 dividend next year (i.e., one year from now). Which is incorrect? Ignore transaction costs.
A. The stock’s dividend yield would be 1%.
B. If you sell the stock at $55 one year later, your capital gains yield would be 5%.
C. If you sell the stock at $55 one year later, your total investment return for the period would be 11%.
D. If you recieve the $0.50 dividend and sell the stock for $55 next year, your total dollar return would be $5.50 per share.