Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Which of the following statement(s) about stock prices following a random walk is (are) not true? The change in stock prices is a random variable

image text in transcribed

image text in transcribed

image text in transcribedimage text in transcribed

Which of the following statement(s) about "stock prices following a random walk is (are) not true? The change in stock prices is a random variable with a standard normal pdf The change in stock prices is a random variable - NO. Positive Variance) The change in stock prices is a random variable - N(Non-Zero Mean, Positive Variance) The change in stock prices is a random variable - pdf of mean and known parameters The change in stock prices is a random variable-pdf of meano Between Time and Time 1, a publicly-traded company did a x for 'stock split. Suppose the rate of return on this company's stock from Time to Time 1 was 0.62 (in decimals) lassume the company did not issue dividends) What was the x for y stock splitratio? Please state your answer to 4 decimal places (for example should be stated as 8.), . Today is Time 0. Consider the following 3-period company: At Time 1, the company generates $76,647.839 of cash flows. From Time 1 to Time 2, the growth rate of cash flows is 0.058 . From Time 2 to Time 3, the growth rate of cash flows is 0.122. The company discounts cash flows at the rate 0.643. Suppose you purchase this company today. What is the holding rate of return between Time and Time 27 Please perform all calculations and state your answer to 3 decimal places Suppose an investor purchases a stock at Time O for $100. Now suppose that at Time 1: the stock price is $137 and the dividend issued is $0.01 at Time 2: the stock price is $268 and the dividend issued is $0.50 at Time 3: the stock price is $380 and the dividend issued is $0.20 What is the total sum of the FV of dividends (where the "future" period is the 3rd period)? Compute all numbers in your calculations and state your answer to exactly two decimal places (.e. as #.##). Which of the following statement(s) about "stock prices following a random walk is (are) not true? The change in stock prices is a random variable with a standard normal pdf The change in stock prices is a random variable - NO. Positive Variance) The change in stock prices is a random variable - N(Non-Zero Mean, Positive Variance) The change in stock prices is a random variable - pdf of mean and known parameters The change in stock prices is a random variable-pdf of meano Between Time and Time 1, a publicly-traded company did a x for 'stock split. Suppose the rate of return on this company's stock from Time to Time 1 was 0.62 (in decimals) lassume the company did not issue dividends) What was the x for y stock splitratio? Please state your answer to 4 decimal places (for example should be stated as 8.), . Today is Time 0. Consider the following 3-period company: At Time 1, the company generates $76,647.839 of cash flows. From Time 1 to Time 2, the growth rate of cash flows is 0.058 . From Time 2 to Time 3, the growth rate of cash flows is 0.122. The company discounts cash flows at the rate 0.643. Suppose you purchase this company today. What is the holding rate of return between Time and Time 27 Please perform all calculations and state your answer to 3 decimal places Suppose an investor purchases a stock at Time O for $100. Now suppose that at Time 1: the stock price is $137 and the dividend issued is $0.01 at Time 2: the stock price is $268 and the dividend issued is $0.50 at Time 3: the stock price is $380 and the dividend issued is $0.20 What is the total sum of the FV of dividends (where the "future" period is the 3rd period)? Compute all numbers in your calculations and state your answer to exactly two decimal places (.e. as #.##)

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

The AMA Handbook Of Financial Risk Management

Authors: John J. Hampton

1st Edition

0814417442, 978-0814417447

More Books

Students also viewed these Finance questions

Question

3. Identify challenges to good listening and their remedies

Answered: 1 week ago

Question

4. Identify ethical factors in the listening process

Answered: 1 week ago