Question
2. Stock XYZ price and dividend payout per year is given below. Price Dividend Div Yield Capital Gain Yield Total Return 1 12 $2 2
2. Stock XYZ price and dividend payout per year is given below.
Price | Dividend | Div Yield | Capital Gain Yield | Total Return | |
1 | 12 | $2 | |||
2 | 18 | 2.5 | |||
3 | 15 | 2.5 | |||
4 | 22 | 3 |
a. Fill in the blanks for the dividend yield, capital gain yield and total return per year. Feel free to use a spreadsheet.
b. Calculate the arithmetic mean return, geometric mean, and standard deviation.
c. Assume that Stock XYZs returns are normally distributed. Draw a normal distribution curve and depict the range of likely returns within two standard deviations. What is the area or probability of occurrence?
d. Calculate the Coefficient of Variation for Stock XYZ. If Stock ABC has a Coefficient of Variation of 1.5, which stock is riskier per unit of return?
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