A stock has the following stock information: Year Stock Price 2014 $ 22.75 2015 $ 22.00...
A stock has the following stock information:
|
Year |
Stock Price |
|
2014 |
$ 22.75 |
|
2015 |
$ 22.00 |
|
2016 |
$ 23.75 |
|
2017 |
$ 26.00 |
What is the arithmetic average return of this stock? ENTER YOUR ANSWER AS A PERCENTAGE WITH ONE DECIMAL PLACE (e.g., 12.1) AND NOT AS A DECIMAL (e.g., 0.121). ROUND TO THE NEAREST TENTH OF A PERCENT. DO NOT USE THE PERCENT SIGN (%) IN YOUR ANSWER.
Homework Answers
Average Return in 2015 = (22 - 22.75)/22.75 = -3.30%
Average Return in 2016 = (23.75 - 22)/22 = 7.95%
Average Return in 2017 = (26 - 23.75)/23.75 = 9.47%
Average Growth Rate = (-0.033 + 0.0795 + 0.0947)/3
Average Growth Rate = 4.71%
Add Answer to:
A stock has the following stock information:
Year
Stock Price
2014
$ 22.75
2015
$ 22.00...
A stock has a beta of 1.10, the expected return on the market is 10%, and...
A stock has a beta of 1.10, the expected return on the market is 10%, and the risk-free rate is 2.5%. What must the expected return on this stock be? **ENTER YOUR ANSWER AS A PERCENTAGE WITH ONE DECIMAL PLACE (e.g., 12.1) AND NOT AS A DECIMAL (e.g., 0.121). ROUND TO THE NEAREST TENTH OF A PERCENT.**
Last year stock A had a return of 7 percent and stock B had a return of 10 percent. If you held each stock equally in a...
Last year stock A had a return of 7 percent and stock B had a return of 10 percent. If you held each stock equally in a portfolio (i.e. 50% in A and 50% in B), what would the return of your portfolio have been? **ENTER YOUR ANSWER AS A PERCENTAGE WITH ONE DECIMAL PLACE (e.g., 12.1) AND NOT AS A DECIMAL (e.g., 0.121). ROUND TO THE NEAREST TENTH OF A PERCENT.**
A stock has a beta of 1.20, the market premium is 13.0%, and the risk-free rate is 1.0%. What must the expected return o...
A stock has a beta of 1.20, the market premium is 13.0%, and the risk-free rate is 1.0%. What must the expected return on this stock be? ENTER YOUR ANSWER AS A PERCENTAGE WITH ONE DECIMAL PLACE (e.g., 12.1) AND NOT AS A DECIMAL (e.g., 0.121). ROUND TO THE NEAREST TENTH OF A PERCENT.
If the economy is normal, Stock A is expected to return 11.75%. If the economy falls...
If the economy is normal, Stock A is expected to return 11.75%. If the economy falls into a recession, the stock's return is projected at a negative 12%. If the economy is in a boom the stock has a projected return of 17.4% The probability of a normal economy is 60% while the probability of a recession is 20% and boom is 20%. What is the expected return of this stock? ENTER YOUR ANSWER AS A PERCENTAGE WITH ONE DECIMAL...
You have a portfolio that has 125 shares of Stock A that sell for $54 per share and 112 shares of Stock B that sell for...
You have a portfolio that has 125 shares of Stock A that sell for $54 per share and 112 shares of Stock B that sell for $93 per share. What is the portfolio weight for Stock A? ENTER YOUR ANSWER AS A PERCENTAGE WITH ONE DECIMAL PLACE (e.g., 12.1) AND NOT AS A DECIMAL (e.g., 0.121). ROUND TO THE NEAREST TENTH OF A PERCENT.
If the economy is normal, Stock A is expected to return 11.00%. If the economy falls...
If the economy is normal, Stock A is expected to return 11.00%. If the economy falls into a recession, the stock's return is projected at a negative 14%. If the economy is in a boom the stock has a projected return of 20.0% The probability of a normal economy is 60% while the probability of a recession is 20% and boom is 20%. What is the expected return of this stock? **ENTER YOUR ANSWER AS A PERCENTAGE WITH ONE DECIMAL...
A stock has the following stock information: Year Stock Price 2014 $ 21.00 2015 $ 22.25...
A stock has the following stock information: Year Stock Price 2014 $ 21.00 2015 $ 22.25 2016 $ 23.00 2017 $ 25.50 What is the holding period return of this stock?
Use the following information about a firm to estimate the firm’s weighted average cost of capital....
Use the following information about a firm to estimate the firm’s weighted average cost of capital. The firm has 4 million shares of common stock outstanding, trading at the price of $58 per share The firm currently has 175,000 shares of debt that are currently trading at $858 per share with a coupon payment paid semiannually at 5%, 7% yield to maturity, and 10 years to maturity with a par value of $1,000 The risk-free rate is 1.1% The expected...
Year 2014 2015 Stock A's Returns, ra (19.70%) 23.00 13.75 (2.25) 25.25 Stock B's Returns, le...
Year 2014 2015 Stock A's Returns, ra (19.70%) 23.00 13.75 (2.25) 25.25 Stock B's Returns, le (14.80%) 17.40 36.20 (7.60) 8.85 2016 2017 2018 a. Calculate the average rate of return for each stock during the period 2014 through 2018. Round your answers to two decimal places. Stock A: % ol Stock B: b. Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would the realized rate of return on the...
XYZ stock price and dividend history are as follows: Dividend Paid at Year-End Year 2015 2016...
XYZ stock price and dividend history are as follows: Dividend Paid at Year-End Year 2015 2016 2017 2018 Beginning-of-Year Price $102 105 91 An investor buys three shares of XYZ at the beginning of 2015, buys another one shares at the beginning of 2016, sells one share at the beginning of 2017, and sells all three remaining shares at the beginning of 2018. a. What are the arithmetic and geometric average time-weighted rates of return for the investor? (Do not...
Year 2014 2015 Stock A's Returns, ra (19.70%) 23.00 13.75 (2.25) 25.25 Stock B's Returns, le (14.80%) 17.40 36.20 (7.60) 8.85 2016 2017 2018 a. Calculate the average rate of return for each stock during the period 2014 through 2018. Round your answers to two decimal places. Stock A: % ol Stock B: b. Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would the realized rate of return on the...
XYZ stock price and dividend history are as follows: Dividend Paid at Year-End Year 2015 2016 2017 2018 Beginning-of-Year Price $102 105 91 An investor buys three shares of XYZ at the beginning of 2015, buys another one shares at the beginning of 2016, sells one share at the beginning of 2017, and sells all three remaining shares at the beginning of 2018. a. What are the arithmetic and geometric average time-weighted rates of return for the investor? (Do not...
Most questions answered within 3 hours.
-
Which statement is not true about welfare in Canada?
A.Benefits typically vary based on one's ability...
asked 22 minutes ago -
Please help me with FLOWCHART and UML diagram for class,
thank you!
#include <iostream>
#include <fstream>...
asked 1 hour ago -
3. Describe the “logic circuit” of the Lac operon. Which
proteins are bound or not to...
asked 1 hour ago -
Ayesha’s adjusted gross income is $60,000 in 2019. She donated a
piece of artwork with a...
asked 1 hour ago -
For Dijkstra’s shortest path algorithm:
a. Give the Big-O time for Dijkstra’s shortest path algorithm
and...
asked 1 hour ago -
Phosphorus violates the 'octet rule' in biological molecules,
forming more covalent bonds than expected based on...
asked 1 hour ago -
A 1.3 eV electron has a 10-4 probability of tunneling
through a 2.4 eV potential barrier....
asked 1 hour ago -
What is the one ingredient that is common to being successful
with all stakeholders?
profit
trust...
asked 1 hour ago -
Write an assembly language 32 bit program that reads in lines of
text by a .txt...
asked 1 hour ago -
what is the density ( in g/L) of hydrogen gas at 29 degrees C and a...
asked 1 hour ago -
5-6. You are considering three investment alternatives for some
spare cash: Old Reliable Corporation stock (A1),...
asked 1 hour ago -
Problem 16-02
Receivables Investment
Medwig Corporation has a DSO of 45 days. The company averages
$7,250...
asked 2 hours ago