Finance Chapter 12 4 Last Year You Purchased Stock Price

subject Type Homework Help
subject Pages 13
subject Words 978
subject Authors Bradford Jordan, Randolph Westerfield, Stephen Ross

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62.
Today, you sold 200 shares of Indian River Produce stock. Your total return
on these shares is 6.2 percent. You purchased the shares one year ago at a
price of $31.10 a share. You have received a total of $100 in dividends over
the course of the year. What is your capital gains yield on this investment?
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63.
Four months ago, you purchased 1,500 shares of Lakeside Bank stock for
$11.20 a share. You have received dividend payments equal to $0.25 a
share. Today, you sold all of your shares for $8.60 a share. What is your
total dollar return on this investment?
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64.
One year ago, you purchased 500 shares of Best Wings, Inc. stock at a price
of $9.75 a share. The company pays an annual dividend of $0.10 per share.
Today, you sold all of your shares for $15.60 a share. What is your total
percentage return on this investment?
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65.
Last year, you purchased a stock at a price of $47.10 a share. Over the
course of the year, you received $2.40 per share in dividends while inflation
averaged 3.4 percent. Today, you sold your shares for $49.50 a share. What
is your approximate real rate of return on this investment?
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66.
One year ago, you purchased 150 shares of a stock at a price of $54.18 a
share. Today, you sold those shares for $40.25 a share. During the past
year, you received total dividends of $182 while inflation averaged 4.2
percent. What is your approximate real rate of return on this investment?
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67.
What is the amount of the risk premium on a U.S. Treasury bill if the risk-
free rate is 2.8 percent and the market rate of return is 8.35 percent?
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68.
A stock had returns of 11 percent, -18 percent, -21 percent, 20 percent, and
34 percent over the past five years. What is the standard deviation of these
returns?
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69.
The common stock of Air United, Inc., had annual returns of 15.6 percent,
2.4 percent, -11.8 percent, and 32.9 percent over the last four years,
respectively. What is the standard deviation of these returns?
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70.
A stock had annual returns of 3.6 percent, -8.7 percent, 5.6 percent, and
12.5 percent over the past four years. Which one of the following best
describes the probability that this stock will produce a return of 22 percent
or more in a single year?
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71.
A stock has an expected rate of return of 13 percent and a standard
deviation of 21 percent. Which one of the following best describes the
probability that this stock will lose at least half of its value in any one given
year?
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72.
A stock has returns of 18 percent, 15 percent, -21 percent, and 6 percent for
the past four years. Based on this information, what is the 95 percent
probability range of returns for any one given year?
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73.
Your friend is the owner of a stock which had returns of 25 percent, -36
percent, 1 percent, and 16 percent for the past four years. Your friend thinks
the stock may be able to achieve a return of 50 percent or more in a single
year. Based on these returns, what is the probability that your friend is
correct?
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74.
A stock had returns of 15 percent, 8 percent, 12 percent, -15 percent, and -4
percent for the past five years. Based on these returns, what is the
approximate probability that this stock will return at least 20 percent in any
one given year?
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75.
A stock had returns of 14 percent, 13 percent, -10 percent, and 7 percent
for the past four years. Which one of the following best describes the
probability that this stock will lose no more than 10 percent in any one
year?
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76.
Over the past five years, a stock produced returns of 11 percent, 14 percent,
4 percent, -9 percent, and 5 percent. What is the probability that an investor
in this stock will not lose more than 10 percent in any one given year?
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77.
A stock has annual returns of 6 percent, 14 percent, -3 percent, and 2
percent for the past four years. The arithmetic average of these returns is
_____ percent while the geometric average return for the period is _____
percent.
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78.
A stock has annual returns of 5 percent, 21 percent, -12 percent, 7 percent,
and -6 percent for the past five years. The arithmetic average of these
returns is _____ percent while the geometric average return for the period is
_____ percent.
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79.
A stock had returns of 16 percent, 4 percent, 8 percent, 14 percent, -9
percent, and -5 percent over the past six years. What is the geometric
average return for this time period?
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80.
A stock had the following prices and dividends. What is the geometric
average return on this stock?

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