1. In our federalist form of government, what are some of the ways by which states can effectively nullify pieces of federal legislation? Give at least one example from the recent past.

2. What are the two main financial reporting standards currently being used by companies? Do all companies have to use the financial reporting standards?

3. The following table contains prices and dividends for a stock. All prices are after the dividend has been paid. If you bought the stock on January 1 and sold it on December? 31, what is your realized? return? ?Hint: Make sure to round all intermediate calculations to at least five decimal places.

                        Price             Dividend

Jan 1              9.78

Mar 31           10.78                0.18

June 30         10.28                0.18

Sept 30          10.88              0.18

Dec 31            10.78               0.18

The realized return is ______%