(Holding period returns) From the price data that follow, compute the holding-period returns for periods 2 through 4 PERIOD O STOCK PRICE $10 16 (Click on the icon located on the top-right comer of the data table above in order to copy its contents into a spreadsheet.) The holding period return in period 2 for the stock is %. (Round to two decimal places.) (Holding-period returns) From the price data that follow, compute the holding-period returns for periods 2 through 4. PERIOD STOCK PRICES $10 13 (Click on the icon located on the top-right comer of the data table above in order to copy its contents into a spreadsheet.) The holding-period return in period 2 for the stock is % (Round to two decimal places.) Bookmatch 6-12 (book/static) Question Help (Holding-period dollar gain and return) Suppose you purchased 16 shares of Disney stock for $24.22 per share on May 1, 2012. On September 1 of the same year. you sold 12 shares of the stock for $25.88. Calculate the holding-period dollar gain for the shares you sold, assuming no dividend was distributed, and the holding-period rate of return. a. The holding-period dollar gain for the shares you sold is 8 Enter a negative number if it is a loss. (Round to the nearest cent.) Problem 6-15 (similar to) Question Help (Capital asset pricing model) Using the CAPM. estimate the appropriate required rate of return for the three stocks listed here, given that the risk-free rate is 8 percent and the expected return for the market is 13 percent. STOCK E BETA 0.89 0.94 1.34 (Click on the icon located on the top-right comer of the data table above in order to copy its contents into a spreadsheet) a. Using the CAPM, the required rate of return for stock A is % (Round to two decimal places.) Bookmatch 6-15 (book/static) Question Help (Capital asset pricing model) Using the CAPM, estimate the appropriate required rate of return for the three stocks listed here, given that the risk-free rate is 5 percent and the expected return for the market is 12 percent. STOCK BETA 0.75 0.90 1.40 (Click on the icon located on the top-right comer of the data table above in order to copy its contents into a spreadsheet.) a. Using the CAPM. the required rate of return for stock A is %. (Round to two decimal places.) Problem 6-18 (similar to) Question Help (Required rate of return using CAPM) a. Compute a fair rate of return for Intel common stock, which has a 1.4 beta. The risk-free rate is 5 percent, and the market portfolio (New York Stock Exchange stocks) has an expected return of 14 percent. b. Why is the rate you computed a fair rate? a. Using the CAPM, the fair rate of return for Intel common stock is % (Round to two decimal places.) (Holding period returns) From the price data that follow, compute the holding-period returns for periods 2 through 4 PERIOD O STOCK PRICE $10 16 (Click on the icon located on the top-right comer of the data table above in order to copy its contents into a spreadsheet.) The holding period return in period 2 for the stock is %. (Round to two decimal places.) (Holding-period returns) From the price data that follow, compute the holding-period returns for periods 2 through 4. PERIOD STOCK PRICES $10 13 (Click on the icon located on the top-right comer of the data table above in order to copy its contents into a spreadsheet.) The holding-period return in period 2 for the stock is % (Round to two decimal places.) Bookmatch 6-12 (book/static) Question Help (Holding-period dollar gain and return) Suppose you purchased 16 shares of Disney stock for $24.22 per share on May 1, 2012. On September 1 of the same year. you sold 12 shares of the stock for $25.88. Calculate the holding-period dollar gain for the shares you sold, assuming no dividend was distributed, and the holding-period rate of return. a. The holding-period dollar gain for the shares you sold is 8 Enter a negative number if it is a loss. (Round to the nearest cent.) Problem 6-15 (similar to) Question Help (Capital asset pricing model) Using the CAPM. estimate the appropriate required rate of return for the three stocks listed here, given that the risk-free rate is 8 percent and the expected return for the market is 13 percent. STOCK E BETA 0.89 0.94 1.34 (Click on the icon located on the top-right comer of the data table above in order to copy its contents into a spreadsheet) a. Using the CAPM, the required rate of return for stock A is % (Round to two decimal places.) Bookmatch 6-15 (book/static) Question Help (Capital asset pricing model) Using the CAPM, estimate the appropriate required rate of return for the three stocks listed here, given that the risk-free rate is 5 percent and the expected return for the market is 12 percent. STOCK BETA 0.75 0.90 1.40 (Click on the icon located on the top-right comer of the data table above in order to copy its contents into a spreadsheet.) a. Using the CAPM. the required rate of return for stock A is %. (Round to two decimal places.) Problem 6-18 (similar to) Question Help (Required rate of return using CAPM) a. Compute a fair rate of return for Intel common stock, which has a 1.4 beta. The risk-free rate is 5 percent, and the market portfolio (New York Stock Exchange stocks) has an expected return of 14 percent. b. Why is the rate you computed a fair rate? a. Using the CAPM, the fair rate of return for Intel common stock is % (Round to two decimal places.)