Answer: a. -6.71%; b. 17.68%
Explanation:
a. Calculate the return if the price of the stock at the end of the year is $36.
The return of the stock will be calculated as:
= (End price - Beginning price+Dividends)/Beginning price
=(36 - 41 + 2.25)/41
= -2.75/41
= -0.0671
= -6.71%
b. The return of the stock will be calculated as:
= (End price - Beginning price+Dividends)/Beginning price
=(46 - 41 + 2.25)/41
= 7.25/41
= 0.1768
= 17.68%