Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer the 5 questions in the following pictures 24) Samantha bought a stock one year ago for $66 a share. She received a total

please answer the 5 questions in the following pictures image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
24) Samantha bought a stock one year ago for $66 a share. She received a total of $2.00 in dividends. Today she sold the stock for $70 a share. Which one of the following statements is correct concerning this investment? (2 points) A) Samantha has current income of $6.00. B) Samantha has a capital gain of $2.00. C) Samantha has a total return of 9.1%. D) Samantha has unrealized income of $4 a share. 26) An investment produced annual rates of return of 7%,-14%, 20% and 4% respectively over the past four years. What is the standard deviation of these returns? (2 points) A) 12.1% B) 14.0% C) 1.5% D) 7.000 21) Which of the following statements are correct concerning the present value of $1.00 five years from today discounted at 5%? (2 points) I. The present value is equal to $1.00 divided by 1.05 to the 5th power. 11. If the discount rate were less than 5%, the present value would be smaller. 111. If the discount rate were more than 5%, the present value would be smaller. IV. If the $1.00 were to be received 6 years from today, the present value would be larger. A) I and II only B) I and III only C) II and III only D) I, III and IV only 8) Which one of the following has the lowest level of risk? A) commercial paper B) money market mutual fund account C) banker's acceptance D) U.S. Treasury bill 28) Marco owns the following portfolio of stocks. What is the expecte (2 points) d return on his portfolio? Stock Amount Invested Return on Stock 400 $10,000 $2,600 -6.0% 75% 12.6% A) 5.5% 6.6% C) 4.7% D) 8.0% 29) The beta of the market is A)-1.0 B) 0.0 C) 1.0 D) undefined

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Investment Management

Authors: Geoffrey Hirt, Stanley Block

10th edition

0078034620, 978-0078034626

More Books

Students also viewed these Finance questions