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I need help with the attached homework assignment.. Question 1 Suppose a stock had an initial price of $96.2 per share, paid a dividend of
I need help with the attached homework assignment..
Question 1 Suppose a stock had an initial price of $96.2 per share, paid a dividend of $6 per share during the year, and had an ending share price of $104.92. What are the percentage returns? Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. 1 points Question 2 You own a portfolio invested 27.92% in Stock A, 14.9% in Stock B, 29.85% in Stock C, and the remainder in Stock D. The beta of these four stocks are 1.31, 0.38, 0.23, and 1.47. What is the portfolio beta? Note: Enter your answer rounded off to two decimal points. For example, if your answer is 12.345 then enter as 12.35 in the answer box. 1 points Question 3 Suppose the returns for Stock A for last six years was 4%, 7%, 8%, -2%, 9%, and 7%. Compute the standard deviation of the returns. Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. 1 points Question 4 Suppose a stock had an initial price of $90.49 per share, paid a dividend of $7.9 per share during the year, and had an ending share price of $88.61. What are the dollar returns? Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box. 1 points Question 5 Suppose a stock had an initial price of $83.75 per share, paid a dividend of $7.6 per share during the year, and had an ending share price of $102.35. What are the percentage returns if you own 25 shares? Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. 1 points Question 6 You own a portfolio invested 10.62% in Stock A, 11.3% in Stock B, 27.46% in Stock C, and the remainder in Stock D. The beta of these four stocks are 0.79, 0.66, 0.54, and 1.41. What is the portfolio beta? Note: Enter your answer rounded off to two decimal points. For example, if your answer is 12.345 then enter as 12.35 in the answer box. 1 points Question 7 Calculate the expected returns of your portfolio Stock Invest Exp Ret A $319 3.2% B $715 15.2% C $416 21.5% Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 12.345% then enter as 12.35 in the answer box. 1 points Question 8 Based on the following information, calculate the expected returns: Prob Return Recession 30% 26.6% Boom 20.5% 70% Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 12.345% then enter as 12.35 in the answer box. 1 points Question 9 You have observed the following returns on ABC's stocks over the last five years: 3.5%, 9.4%, -5.1%, 13.2%, -4.4% What is the arithmetic average returns on the stock over this five-year period. Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. 1 points Question 10 Calculate the expected returns of your portfolio Stock Invest Exp Ret A $318 7.6% B $790 17.1% C $1,929 21.9% Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 12.345% then enter as 12.35 in the answer box. 1 points Question 11 Suppose a stock had an initial price of $68.33 per share, paid a dividend of $9.8 per share during the year, and had an ending share price of $81.78. If you own 71 shares, what are the dollar returns? Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box. 1 points Question 12 A portfolio is invested 26.6% in Stock A, 25% in Stock B, and the remainder in Stock C. The expected returns are 19%, 38.5%, and 22.3% respectively. What is the portfolio's expected returns? Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 12.345% then enter as 12.35 in the answer box. 1 points Question 13 Suppose a stock had an initial price of $53.72 per share, paid a dividend of $7.7 per share during the year, and had an ending share price of $88.24. What are the percentage returns? Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. 1 points Question 14 You own a portfolio of two stocks, A and B. Stock A is valued at $6,540 and has an expected return of 11.2 percent. Stock B has an expected return of 8.1 percent. What is the expected return on the portfolio if the portfolio value is $9,500? 9.58 percent 9.62 percent 9.74 percent 9.97 percent 10.23 percent 1 points Question 15 What is the beta of the following portfolio? 1.08 1.14 1.17 1.21 1.23 1 points Question 16 The stock of Billingsley United has a beta of 0.92. The market risk premium is 8.4 percent and the riskfree rate is 3.2 percent. What is the expected return on this stock? 8.87 percent 9.69 percent 10.93 percent 11.52 percent 12.01 percent 1 points Question 17 You own a portfolio that has $1,900 invested in Stock A and $2,700 invested in Stock B. If the expected returns on these stocks are 9 percent and 15 percent, respectively, what is the expected return on the portfolio? 10.57 percent 11.14 percent 11.96 percent 12.52 percent 13.07 percent 1 points Question 18 A $36,000 portfolio is invested in a risk-free security and two stocks. The beta of stock A is 1.29 while the beta of stock B is 0.90. One-half of the portfolio is invested in the risk-free security. How much is invested in stock A if the beta of the portfolio is 0.58? $6,000 $9,000 $12,000 $15,000 $18,000 1 points Question 19 What is the beta of the following portfolio? 0.98 1.02 1.11 1.14 1.20 1 points Question 20 The systematic risk is same as: Unique risk Diversifiable risk Asset-specific risk Market risk Unsystematic risk 1 points Question 21 Portfolio diversification eliminates which one of the following? Total investment risk Portfolio risk premium Market risk Unsystematic risk Reward for bearing risk 1 points Question 22 Standard deviation measures _____ risk while beta measures _____ risk. systematic; unsystematic unsystematic; systematic total; unsystematic total; systematic asset-specific; market 1 points Question 23 Semi-strong-form efficient markets are not weak-form efficient. True False 1 points Question 24 If markets are efficient, the difference between the instrinsic value and the market value of the comapny's security is: positive negative zero 1 points Question 25 Suppose the nominal rate is 10.01% and the inflation rate is 4.58%. Solve for the real rate. Use the Fisher Effect formula. Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. 1 points Save and Submit Click Save and Submit to save and submit. 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