Question

1. You purchased one share of Kohl's Corporation, Inc for $50.47 per share. The company paid a dividend of $5.26 per share during the year, and had an ending share price of $48.91. What is the capital gains yield? Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

2. You purchased 206 shares of Best Buy CO., Inc for $54.96 per share. The company paid a dividend of $4.18 per share during the year, and had an ending share price of $59.20. What is the dollar return on your investment? Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. If your answer is negative, do include the negative sign.

3. Suppose Stock A has a return of 24.48%. The risk-free rate is 3.97%. The inflation rate is 1.61%. What is the risk premium on Stock A? Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

4. You own a portfolio that has $738 invested in Stock A and $1,913 invested in Stock B. If the returns on these stocks are 18.43% and 6.07%, respectively, what is the return on the portfolio? Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.

5. You have observed the following returns on Stock A's stocks over the last five years: 26.34%, 34.2%, -7.02%, -6.6%, -4.6% What is the average return on the stock over this five-year period? Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. If the answer is negative, do enter the negative sign.

Answer 1

Ans 1) -3.09

Po =	Purchase Price
P1 =	Sale Price

CAPITAL GAIN YIELD =	(P1 - P0)/ P0 * 100
	(48.91-50.47)/50.47*100
	-3.09%