Question
1.) You bought a stock one year ago for $50.77 per share and sold it today for $56.61 per share. It paid a $1.43 per
1.) You bought a stock one year ago for $50.77 per share and sold it today for $56.61 per share. It paid a $1.43 per share dividend today. What was your realized return?
The realized return was ______%.
2.) You bought a stock one year ago for $51.01 per share and sold it today for $56.33 per share. It paid a $1.06 per share dividend today. How much of the return came from dividend yield and how much came from capital gain?
The return that came from dividend yield is ________%.
3.) The last four years of returns for a stock are as follows:
Year | 1 | 2 | 3 | 4 |
Return | 3.9% | 28.4% | 12.4% | 3.7% |
a. What is the average annual return?
b. What is the variance of the stock's returns?
c. What is the standard deviation of the stock's returns?
A. _________
B. _________
C.__________
4.) Calculate the 95% prediction intervals for the four different investments included in the following table.
Small Stocks | S&P 500 | Corporate Bonds | T-Bills | |
Average Return | 19.94% | 12.45% | 5.95% | 3.73% |
Standard Deviation of returns | 39.57% | 19.74% | 7.47% | 4.09% |
The 95% prediction interval of small stocks is between
______% AND ______%
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