Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please help (Calculating rates of return) The S&P stock index represents a portfolio comprised of 500 large publicly traded companies On December 24, 2007, the
please help
(Calculating rates of return) The S\&P stock index represents a portfolio comprised of 500 large publicly traded companies On December 24, 2007, the index had a value of 1,410 and on December 24, 2008, the index was approximately 888 . If the average dividend paid on the stocks in the index is approximately 4.5 percent of the value of the index at the beginning of the year, what is the rate of return eamed on the S\&P index? What is your assessment of the relative riskiness of investing in a single stock such as Google compared to investing in the S\&P index (recall from Chapter 2 that you can purchase mutual funds that mimic the returns of the index)? The rate of return eamed on the S\&P 500 is \%. (Round to two decimal places.) (Calculating rates of return) The S\&P stock index represents a portfolio comprised of 500 large publicly traded companies On December 24, 2007, the index had a value of 1,410 and on December 24, 2008, the index was approximately 888 . If the average dividend paid on the stocks in the index is approximately 4.5 percent of the value of the index at the beginning of the year, what is the rate of return eamed on the S\&P index? What is your assessment of the relative riskiness of investing in a single stock such as Google compared to investing in the S\&P index (recall from Chapter 2 that you can purchase mutual funds that mimic the returns of the index)? The rate of return eamed on the S\&P 500 is \%. (Round to two decimal places.) 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