Suppose you bought a 13 percent coupon bond one year ago for $870. The bond sells for $930 today.

Requirement 1:

Assuming a $1,000 face value, what was your total dollar return on this investment over the past year?

(Click to select) $207 $154 $194 $60 $190

Requirement 2:

What was your total rate of return on this investment over the past year (in percent)?

(Click to select) 25.99% 21.84% 17.69% 23.80% 6.90%

1)

Requirement 3:

If the inflation rate last year was 6 percent, what was your total "real" rate of return on this investment? Assume that the answer for "Requirement 2" above is in "nominal" terms, and then use the Fisher Effect Formula (see Bond chapter) to find the "real" rate of return. (Do not round intermediate calculations.)

(Click to select) 12.10% 17.78% 14.94% 13.61% .85%

2)

Youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 4 percent, -14 percent, 27 percent, 13 percent, and 14 percent.

Requirement 1:

What was the average return on Crash-n-Burns stock over this five year period?

(Click to select) 7.13% 11.00% 8.80% 9.59% 10.47%

Requirement 2:
(a)	What was the variance of Crash-n-Burns returns over this period? (Do not round intermediate calculations.)
	(Click to select) 0.02090 0.01838 0.02357 0.01861 0.02297

(b)	What was the standard deviation of Crash-n-Burns returns over this period? (Do not round intermediate calculations.)
	(Click to select) 12.28% 15.35% 15.16% 18.04% 13.56%