1. Over the past four years, a stock produced returns of 13 percent, -9 percent, 8 percent, and 14 percent, respectively. Based on these four years, what range of returns would you expect to see 99 percent of the time?

a. -18.46 percent to 24.39 percent b. -32.39 percent to 48.56 percent c. -25.48 percent to 38.48 percent d. –22.39 percent to 26.41 percent e. –18.46 percent to 22.41 percent

2. Keidis Industries will pay a dividend of $4.35, $5.45, and $6.65 per share for each of the next three years, respectively. In four years, you believe that the company will be acquired for $61.00 per share. The return on similar stocks is 9.4 percent. What is the current stock price?

a. $70.11

b. $61.33

c. $56.19

d. $58.58

e. $54.39