Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

10 points eBook Suppose a stock had an initial price of $82 per share, paid a dividend of $1.20 per share during the year, and

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

10 points eBook Suppose a stock had an initial price of $82 per share, paid a dividend of $1.20 per share during the year, and had an ending share price of $90. Compute the percentage total return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Total return % 2 10 points eBook Print References Check my work Suppose a stock had an initial price of $72 per share, paid a dividend of $2.60 per share during the year, and had an ending share price of $59. Compute the percentage total return, dividend yield, and capital gains yield. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Total return Dividend yield % Capital gains yield 3 10 points eBook B CO Hint Print Check my work Refer to Table 12.2. a. What was the average annual return on large-company stock from 1926 through 2016 in nominal terms? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the average annual return on large-company stock from 1926 through 2016 in real terms? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Nominal return % b. Real return % 4 10 points eBook Hint Print Check my work Refer to Table 12.2. a. What is the historical real return on long-term government bonds? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the historical real return on long-term corporate bonds? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Government bonds % b. Corporate bonds % 5 10 points eBook Print References Check my work Using the returns shown above, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. (Do not round intermediate calculations. Enter your average return and standard deviation as a percent rounded to 2 decimal places, e.g., 32.16, and round the variance to 5 decimal places, e.g., .16161.) X Y Average returns % % Variances Standard deviations % % Year 12345 Returns X82210 15 33 14 19 23 18 % 14 - Y 15 %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Handbook Of The Economics Of Finance

Authors: George M. Constantinides, Milton Harris, Rene M. Stulz

1st Edition

044459406X, 978-0444594068

More Books

Students also viewed these Finance questions

Question

s

Answered: 1 week ago

Question

Develop successful mentoring programs. page 400

Answered: 1 week ago