Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Last year, you purchased a stock at a price of $53 a share. Over the course of the year, you received $1.6 in dividends and
Last year, you purchased a stock at a price of $53 a share. Over the course of the year, you received $1.6 in dividends and inflation averaged 2.8 percent. Today, you sold your shares for $53.9 a share. What is your approximate real rate of return on this investment? A) 1.0 percent B) 7.2 percent C) 1.9 percent D) 4.7 percent E) 7.5 percent Part 2 A stock has returns of 2 percent, 19 percent, -24 percent, and 17 percent for the past 4 years. Based on this information, what is the 95 percent probability range for any one given year? A) -8.6 to 12.1 percent B) -56.0 to 63.0 percent C) -25.0 to 35.3 percent D) -36.2 to 43.2 percent E) -16.3 to 23.3 percent Part 3 One year ago, you purchased a stock at a price of $32 a share. Today, you sold the stock and realized a total return of 25%. Your capital gain was $6 a share. What was your dividend yield on this stock? A) 21.25% B) 18.75% C) 1.25% D) 6.25% E) 3.75%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started