1. Investment ReturnA corporate bond that you own at the beginning of the year is worth $1075. During the year, it pays $65 in interest payments and ends the year valued at $1025. What was your dollar return and percent return?
2. Portfolio WeightsAn investor owns $10,000 of Adobe Systems stock, $15,000 of Dow Chemical, and $25,000 of Office Depot. What are the portfolio weights of each stock?
3. Portfolio ReturnYear to date, Yum Brands had earned a 5.80 percent return. During the same time period, Raytheon earned 7.26 percent and Coca-Cola earned 0.046. If you have a portfolio made up of 40 percent Yum Brands, 30 percent Raytheon, and 30 percent Coca-Cola, what is your portfolio return?
4. Average ReturnThe past five monthly returns for PG&E are 3.17 percent, 3.88 percent, 3.77 percent, 6.47 percent, and 3.58 percent. What is the average monthly return (arithmetic average) the false return? What is the geometric average return (the true return)?
5. Standard DeviationThe past five monthly returns for Kohls are 1.54 percent, 2.62 percent, 1.68 percent, 7.25 percent, and 2.56 percent. Compute the standard deviation of Kohls monthly returns.