NEED ANSWERS WITHIN 15 MINUTES-- Multiple choice questions with possible answers at the end

5.

This morning you purchased one share of stock for $14. The stock pays $.20 per share each quarter as a dividend. What must the stock price be one year from now if you want to earn a total return of 12 percent for the year? $13.12

$13.46

$15.01

$14.88

$14.54

6.Exo shares are currently selling for $25.75 each. You bought 200 shares one year ago at $24 a share and received dividend payments of $1.60 a share. What is the percentage capital gain for the period? 7.29%

10.42%

4.17%

10.24%

13.21%

10.Assume the return on large-company stocks is currently 11.5 percent. The risk premium on large-company stocks is 8.6 percent and the inflation rate is 2.4 percent. What is the current risk-free rate of return? 8.4%

2.9%

7.4%

10.6%

12.6%

15A portfolio contains four assets. Asset 1 has a beta of .7 and represents 35 percent of the portfolio. Asset 2 has a beta of 1.3 and represents 20 percent of the portfolio. Asset 3 has a beta of 1.1 and is 25 percent of the portfolio. Asset 4 has a beta of 2.16. What is the portfolio beta? 1.212

1.642

1.480

1.264

1.308

16.You recently purchased a stock that is expected to earn 15 percent in a booming economy, 9 percent in a normal economy and lose 5 percent in a recessionary economy. There is a 15 percent probability of a boom, a 75 percent chance of a normal economy, and a 10 percent chance of a recession. What is your expected rate of return on this stock? 8.50%

9.50%

8.00%

7.75%

7.45%