Question
1. Stamford Inc. stock price moves from $102 to $72 and also pays $3 in dividends at the end of the period. What is the
1. Stamford Inc. stock price moves from $102 to $72 and also pays $3 in dividends at the end of the period. What is the rate of return on Stamford Inc. stock over this period as a percent to two places. (You need to calculate your rate of return to four places before converting to percent.)
2.
Westport Inc. stock has a beta of 0.8. If the expected rate of the market portfolio is 15.7% and the risk free rate is 4.4, what is the expected return of Westport Inc. stock as a percent to two places (to the right of the decimal point).
3.
Last year, Greenwich Inc. stock experienced an expected rate of 19.8% while the market risk-premium was 7.6% and the risk-free rate was 4.2%. If this year, Greenwich Inc. beta stays the same and so does the risk-free rate, but the market risk premium is going to be 2% more than last year, what will be . Greenwich Inc. expected stock return as a percent to two places (to the right of the decimal point)?
4.
Wilton Inc. stock faces equal probability of the following two outcomes for the next period: The stock will have have either a 23% or a 44% rate of return. What is Wilton Inc. stock's standard deviation (not the variance) as a percent to a two place accuracy to the right of the decimal point.
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