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someone to kick you!). and -19.87 percent over the past five years, respectively. What was the holding period return for the stock? (10 points) 4.

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someone to kick you!). and -19.87 percent over the past five years, respectively. What was the holding period return for the stock? (10 points) 4. A stock has had returns of 18.43 percent, 16.82 percent, 6.83 percent, 32.19 percent, S-year holding-period return [(1+R1)1+R2)(1+R3X1+R4)(1+RS)]-1 5-year holding-period return 0.1987)]-1 S-year holding-period return 0.5655 or 56.55 % (1+0.1843)(1+0.1682)(1+0.0683)(1 +0.32 19 (1- m 5. Suppose share during the year, and had an ending share price of $104. Compute the percentage total return, the dividend yield and the capital gains yield. (10 points) a stock had an initial price of $92 per share, paid a dividend of $1.45 per The return of any asset is the increase in price, plus any dividends or cash flows, all divided by the initial price. The return of this stock is: R-[(S104-92)+ 1.45]/$92 R-1462 or 14.62% The dividend yield is the dividend divided by price at the beginning of the period, so: Dividend yield -$1.45/$92 Dividend yield .0158 or 1.58 % And the capital gains yield is the increase in price divided by the initial price, so: Capital gains yield = ($104-92)/$92 Capital gains yield- .1304 or 13.04 % 6. Consider a world with only two risky assets, denoted by X and Y. There is a 1/3 chance of each state of the economy. Rate of Return Probability X Y Scenario -7% 1/3 17% Recession 7% 1/3 Normal 7% -3% 1/3 Boom -3% Compute the expected returns for X and Y. (6 points) b. Compute the variance and standard deviation for X and Y. (6 points) al

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