Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
50. Portfolio Return The following table shows your stock positions at the beginning of the
year, the dividends that each stock paid during the year, and the stock prices at the end of the
year. What is your portfolio percentage return?
51. Portfolio Return The following table shows your stock positions at the beginning of the
year, the dividends that each stock paid during the year, and the stock prices at the end of the
year. What is your portfolio percentage return?
52. Average Return The past five monthly returns for PG Company are 1.25 percent, -1.50
percent, 4.25 percent, 3.75 percent, and 1.98 percent. What is the average monthly return?
53. Standard Deviation Compute the standard deviation of the five monthly returns for
PG&E: 1.25 percent, -1.50 percent, 4.25 percent, 3.75 percent, and 1.98 percent.
54. Portfolio Weights If you own 600 shares of Alaska Corporation at $23.25, 450 shares of
Best Company at $34.50, and 150 shares of Motor Company at $6.95, what are the portfolio
weights of each stock?
55. Portfolio Weights If you own 1,000 shares of Alaska Corporation at $19.95, 250 shares of
Best Company at $17.50, and 250 shares of Motor Company at $2.50, what are the portfolio
weights of each stock?
56. FedEx Corp. stock ended the previous year at $113.39 per share. It paid a $0.40 per share
dividend last year. It ended last year at $126.69. If you owned 300 shares of FedEx, what was
your dollar return and percent return?
57. Sprint Nextel Corp. stock ended the previous year at $25.00 per share. It paid a $2.57 per
share dividend last year. It ended last year at $18.89. If you owned 650 shares of Sprint, what was
your dollar return and percent return?
58. Rank the following three stocks by their total risk level, highest to lowest. Night Ryder has
an average return of 14 percent and standard deviation of 30 percent. The average return and
standard deviation of WholeMart are 12 percent and 25 percent; and of Fruit Fly are 25 percent
and 40 percent.
59. Rank the following three stocks by their risk-return relationship, best to worst. Rail Haul
has an average return of 10 percent and standard deviation of 19 percent. The average return and
standard deviation of Idol Staff are 12 percent and 22 percent; and of Poker-R-Us are 11 percent
and 25 percent.
60. Rank the following three stocks by their risk-return relationship, best to worst. Night
Ryder has an average return of 33 percent and standard deviation of 40 percent. The average
return and standard deviation of WholeMart are 10 percent and 20 percent; and of Fruit Fly are
19 percent and 33 percent.
61. An investor owns $8,000 of Adobe Systems stock, $5,000 of Dow Chemical, and $3,000 of
Office Depot. What are the portfolio weights of each stock?
62. Consider the risk-return relationship in T-bills during each decade since 1950. Given this
data, which of the following statements is correct?
63. Year-to-date, Oracle had earned a 15.0 percent return. During the same time period,
Valero Energy earned -12.96 percent and McDonald's earned 1.80 percent. If you have a portfolio
made up of 50 percent Oracle, 10 percent Valero Energy, and 40 percent McDonald's, what is
your portfolio return?
64. The past five monthly returns for Kohl's are 2.55 percent, -8.62 percent, -14.44 percent, -
1.52 percent, and 4.75 percent. What is the average monthly return?
65. The past five monthly returns for PG&E are 12.14 percent, -11.37 percent, 3.77 percent,
6.47 percent, and 3.58 percent. What is the average monthly return?
66. Compute the standard deviation of Kohl's monthly returns. The past five monthly returns
for Kohl's are 5.55 percent, 8.62 percent, -4.44 percent, -1.52 percent, and 9.75 percent.
67. Consider the characteristics of the following three stocks:
The correlation between Thumb Devices and Air Comfort is -0.12. The correlation between
Thumb Devices and Sport Garb is 0.89. The correlation between Air Comfort and Sport Garb is -
0.85. If you can pick only two stocks for your portfolio, which would you pick? Why?
68. If you own 300 shares of Alaska Air at $15.88, 250 shares of Best Buy at $151.00, and
1,150 shares of Ford Motor at $3.51, what are the portfolio weights of each stock?
69. If you own 400 shares of Xerox at $15.00, 500 shares of Qwest at $10.00, and 350 shares
of Liz Claiborne at $45.00, what are the portfolio weights of each stock?
70. At the beginning of the month, you owned $15,500 of General Motors, $4,500 of
Starbucks, and $9,000 of Nike. The monthly returns for General Motors, Starbucks, and Nike
were 7.10 percent, -1.36 percent, and -0.54 percent. What is your portfolio return?
71. You have $10,000 to invest. You want to purchase shares of Alaska Air at $50.00, Best
Buy at $50.00, and Ford Motor at $10.00. How many shares of each company should you
purchase so that your portfolio consists of 25 percent Alaska Air, 40 percent Best Buy, and 35
percent Ford Motor? Report only whole stock shares.
