1. Suppose a stock had an initial price of $64.35 per share, paid a dividend of $4.6 per share during the year, and had an ending share price of $96.85. If you own 242 shares, what are the dollar returns?

2.You own a portfolio invested 15.49% in Stock A, 18.06% in Stock B, 22.29% in Stock C, and the remainder in Stock D. The beta of these four stocks are 0.96, 1.18, 0.4, and 0.62. What is the portfolio beta?

• 3.Suppose a stock had an initial price of $79.8 per share, paid a dividend of $4.5 per share during the year, and had an ending share price of $88.53. What are the percentage returns if you own 25 shares?

• 4.A portfolio is invested 28.6% in Stock A, 11.3% in Stock B, and the remainder in Stock C. The expected returns are 14.8%, 20.4%, and 7.8% respectively. What is the portfolio's expected returns?

• 5.Calculatetheexpectedreturnsofyourportfolio

Stock	Invest	Exp Ret
A	$490	3.1%
B	$960	13%
C	$262	24.6%

7.Suppose a stock had an initial price of $70.2 per share, paid a dividend of $7.6 per share during the year, and had an ending share price of $109.5. What are the percentage returns?

• 8.Suppose a stock had an initial price of $63.77 per share, paid a dividend of $5.7 per share during the year, and had an ending share price of $85.46. What are the dollar returns?

9.Suppose the returns for Stock A for last six years was 4%, 7%, 8%, -2%, 9%, and 7%. Compute the standard deviation of the returns.

10.You have observed the following returns on ABC's stocks over the last five years:2.5%, 9%, -4.9%, 13.6%, -2.3% What is the arithmetic average returns on the stock over this five-year period.

• 11.Based on the following information, calculate the expected returns:

	Prob	Return
Recession	30%	22.3%
Boom	70%	26.3%

• 12.You own a portfolio invested 16.08% in Stock A, 11.31% in Stock B, 17.87% in Stock C, and the remainder in Stock D. The beta of these four stocks are 0.41, 0.83, 0.66, and 0.99. What is the portfolio beta?

13.Calculate the expected returns of your portfolio

Stock	Invest	Exp Ret
A	$318	7.6%
B	$790	17.1%
C	$1,929	21.9%

• 14.Suppose the real rate is 5.23% and the nominal rate is 10.45%. Solve for the inflation rate. Use the Fisher Effect equation.

1. Suppose a stock had an initial price of $64.35 per share, paid a dividend of $4.6 per share during the year, and had an ending share price of $96.85. If you own 242 shares, what are the dollar returns? 2. You own a portfolio invested 15.49% in Stock A, 18.06% in Stock B, 22.29% in Stock C, and the remainder in Stock D. The beta of these four stocks are 0.96, 1.18, 0.4, and 0.62. What is the portfolio beta? 3. Suppose a stock had an initial price of $79.8 per share, paid a dividend of $4.5 per share during the year, and had an ending share price of $88.53. What are the percentage returns if you own 25 shares? 4. A portfolio is invested 28.6% in Stock A, 11.3% in Stock B, and the remainder in Stock C. The expected returns are 14.8%, 20.4%, and 7.8% respectively. What is the portfolio's expected returns? 5. Calculate the expected returns of your portfolio Stock A B C Invest $490 $960 $262 Exp Ret 3.1% 13% 24.6% 6. Suppose a stock had an initial price of $70.2 per share, paid a dividend of $7.6 per share during the year, and had an ending share price of $109.5. What are the percentage returns? 7. Suppose a stock had an initial price of $78.69 per share, paid a dividend of $7.8 per share during the year, and had an ending share price of $81.95. What are the percentage returns? 8. Suppose a stock had an initial price of $63.77 per share, paid a dividend of $5.7 per share during the year, and had an ending share price of $85.46. What are the dollar returns? 9. Suppose the returns for Stock A for last six years was 4%, 7%, 8%, -2%, 9%, and 7%. Compute the standard deviation of the returns. 10. You have observed the following returns on ABC's stocks over the last five years:2.5%, 9%, -4.9%, 13.6%, -2.3% What is the arithmetic average returns on the stock over this five-year period. 11. Based on the following information, calculate the expected returns: Prob Recessio n Boom Return 30% 22.3% 70% 26.3% 12. You own a portfolio invested 16.08% in Stock A, 11.31% in Stock B, 17.87% in Stock C, and the remainder in Stock D. The beta of these four stocks are 0.41, 0.83, 0.66, and 0.99. What is the portfolio beta? Calculate the expected returns of your portfolio Stock A B C Invest $318 $790 $1,929 Exp Ret 7.6% 17.1% 21.9% 13. Suppose the real rate is 5.23% and the nominal rate is 10.45%. Solve for the inflation rate. Use the Fisher Effect equation. Answer: 1 Initial price = Dividend = Ending price Numbber of shares owned Dollar return = 2 Stock A B C D 64.35 4.6 96.85 242 8978.2 Portion Beta 15.49% 18.06% 22.29% 44.1600% Portfolio beta = 0.725 3 Initial price = Dividend = Ending price Numbber of shares owned 79.8 4.5 88.53 25 Percentage return = 4 Stock A B C 16.58% Portion Return 28.60% 14.80% 11.30% 20.40% 60.100% 7.80% Portfolio return = 5 Stock A B C 11.23% Value Portion Return 490 28.62% 3.10% 960 56.07% 13.00% 262 15.304% 24.60% 1712.00 Portfolio return = 7 Initial price = Dividend = Ending price Percentage return = 0.96 1.18 0.4 0.62 11.94% 70.2 7.6 109.5 66.81% 8 Initial price = Dividend = Ending price 63.77 5.7 85.46 Dollar return = 27.39 9 Year Return 1 2 3 4 5 6 4% 7% 8% -2% 9% 7% Standard deviation = 11 4.04% Prob return 30% 22.30% 70% 26.30% Recession Boom Expected return = 12 Stock A B C D 25.100% Portion Beta 16.08% 11.31% 17.87% 54.7400% Portfolio beta = 13 Stock A B C 0.41 0.83 0.66 0.99 0.820 Value Portion Return 318 10.47% 7.60% 790 26.01% 17.10% 1929 63.517% 21.90% 3037.00 Portfolio return = 19.15% 14 Real rate Nominal rate 5.23% 10.45% Inflation = 5.22% Revised: 7 Initial price = Dividend = Ending price 78.69 7.8 81.95 Percentage return = 14.06% 10 Year Return 1 2 3 4 5 Average 2.50% 9.00% -4.90% 13.60% -2.30% 3.58% Answer: 1 Initial price = Dividend = Ending price Numbber of shares owned Dollar return = 2 Stock A B C D 64.35 4.6 96.85 242 8978.2 Portion Beta 15.49% 18.06% 22.29% 44.1600% Portfolio beta = 0.725 3 Initial price = Dividend = Ending price Numbber of shares owned 79.8 4.5 88.53 25 Percentage return = 4 Stock A B C 16.58% Portion Return 28.60% 14.80% 11.30% 20.40% 60.100% 7.80% Portfolio return = 5 Stock A B C 11.23% Value Portion Return 490 28.62% 3.10% 960 56.07% 13.00% 262 15.304% 24.60% 1712.00 Portfolio return = 7 Initial price = Dividend = Ending price Percentage return = 0.96 1.18 0.4 0.62 11.94% 70.2 7.6 109.5 66.81% 8 Initial price = Dividend = Ending price 63.77 5.7 85.46 Dollar return = 27.39 9 Year Return 1 2 3 4 5 6 4% 7% 8% -2% 9% 7% Standard deviation = 11 4.04% Prob return 30% 22.30% 70% 26.30% Recession Boom Expected return = 12 Stock A B C D 25.100% Portion Beta 16.08% 11.31% 17.87% 54.7400% Portfolio beta = 13 Stock A B C 0.41 0.83 0.66 0.99 0.820 Value Portion Return 318 10.47% 7.60% 790 26.01% 17.10% 1929 63.517% 21.90% 3037.00 Portfolio return = 19.15% 14 Real rate Nominal rate 5.23% 10.45% Inflation = 5.22% Revised: 7 Initial price = Dividend = Ending price 78.69 7.8 81.95 Percentage return = 14.06% 10 Year Return 1 2 3 4 5 Average 2.50% 9.00% -4.90% 13.60% -2.30% 3.58%