see file

1. Initial price of the stock - $79
Dividend paid - $1.45 per share
Ending share price - $71
Total Stock Return = [(P1 – P0) + D]/P0
Where, P0 = Initial stock price
P1 = Ending Stock price
D = Dividend
So, Total Return = [(71-79)+1.45]/79
        = -0.08 or -8%
Dividend yield = Annual Dividend/Current stock price
        = 1.45/71
        = 0.02 or 2%
Capital gain yield = (P1 – P0)/P0
        = (71-79)/79
        = -0.10 or -10%
2. Purchase price of 2% Preferred Stock = $95.64
Market price of stock = $96.96
Par value = $100
Total Return = [(P1 – P0) + D]/P0
Where, P0 = Initial stock price
P1 = Ending Stock price
D = Dividend
Dividend = 2% of 100
    = $2
Total Return = [(96.96 – 95.64) + 2]/95.64
    = 0.03 or 3%
3. a. Arithmetic Average Returns:
Large company Stocks = (3.96+14.12+19.01-14.67-32.16+37.26)/6
            = 4.59
T-Bills = (4.50+4.88+3.80+6.96+4.88+6.14)/6
    = 5.19
b. Standard Deviation:
Large company Stocks:-
    Year
    (Value...