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Question 1 1 pts On January 31st 2019, you bought 400 shares of the CAB Corporation for $140 a share and on January 31st 2022
Question 1 1 pts On January 31st 2019, you bought 400 shares of the CAB Corporation for $140 a share and on January 31st 2022 you sold them for $150 a share. In January 2022, you also received a cash dividend of $12 per share. What is the annual holding period yield (or HPY) on your CAB stock investment? HPY = 12% = HPY = 5% = HPY = 16% HPY = 21% Question 2 2 pts You expect the risk-free rate to be 4% and the market return to be 11%. You also have the following information about three stocks: Current Expected Expected Share Beta Price Price Dividend X 3.0 $15 $18 $0.5 Y 2.0 $16 $19 $0.4 Z 1.0 $17 $20 $0.3 What is the most profitable investment strategy concerning these three shares? O Sell X, and buy Y and Z Sell X and Y, and buy Z O Buy X, Y and Z O Sell X, Y and Z Question 3 1 pts During the past six years, you owned Stock JBH and Stock HBU that had the following annual rates of return: Year 1 2 3 4 5 6 JBH 0.12 -0.12 0.13 -0.13 0.15 -0.09 HBU 0.28 0.02 0.10 0.21 0.31 0.21 What is the (historical) standard deviation of the annual rate of return for JBH and HBU? O Stock JBH = 0.14; Stock HBU = 0.11 O Stock JBH = 0.15; Stock HBU = 0.16 O Stock JBH = 0.10; Stock HBU = 0.13 Stock JBH = 0.16; Stock HBU = 0.12
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