21

Calculate the expected returns of your portfolio

Stock	Invest	Exp Ret
A	$199	3.6%
B	$714	14.3%
C	$455	25%

22Suppose a stock had an initial price of $66.63 per share, paid a dividend of $9.1 per share during the year, and had an ending share price of $85.22. What are the percentage returns?

23A portfolio is invested 39.5% in Stock A, 14.9% in Stock B, and the remainder in Stock C. The expected returns are 16.1%, 24.8%, and 22.6% respectively. What is the portfolio's expected returns?\

24Suppose a stock had an initial price of $63.92 per share, paid a dividend of $5.6 per share during the year, and had an ending share price of $90.08. What are the percentage returns if you own 25 shares?

25 Suppose the nominal rate is 11.69% and the inflation rate is 4%. Solve for the real rate. Use the Fisher Effect formula.