28. As per CAPM, Expected Return = Risk free rate + beta*(Market Return - Risk free Return)
= 2% + 0.8(10%-2%)
= 8.4%
i.e. 0.084
29. Return on investment = Dividend received + increase in price
= 2*100 + (28-26)*100
= $400
% Return on investment = 400/26*100
= 0.1538
D View hint for Question 27 Question 28 (1 point) A firm has a beta of...
Question 28 (1 point) One year ago, Jason purchased 100 shares of Terry Corporation stock at $29 per share. Today, one year later, the stock pays a $2 per share dividend and the price is now $32 per share. What is the total percentage return on the investment for the one year? (Enter your answer as a decimal rounded to 4 decimal places, not a percentage. For example enter .0153 instead of 1.53%.) Your Answer: Answer
Question 19 (1 point) Calculate the expected return on a stock with a beta of 1.19. The risk-free rate of return is 2% and the market portfolio has an expected return of 9%. (Enter your answer as a decimal rounded to 4 decimal places, not a percentage. For example, enter .0153 instead of 1.53%) Your Answer Answer
Question 1 (1 point) In the last three years a stock had returns of 11.00%, -27.50%, and 6.00%. What was the arithmetic average annual return of the stock? (Enter your answer as a percentage rounded to 2 decimal places. For example, enter 1.53% instead of .0153.) Your Answer: Answer units
Question 12 (0.2 points) Donuts Delite just paid an annual dividend of $1.10 a share. The firm expects to increase this dividend by 8 percent per year the following three years and then decrease the dividend growth to 2 percent annually thereafter. Which one of the following is the correct computation of the dividend for year 5? O 1) ($1.10) (1.08)3 (1.02)3 O2) ($1.10) (1.08 x 3) (1.02 * 3) O 3) ($1.10) (1.08 * 3) (1.02 x 4) O4)...
Question 8 (0.2 points) Consider the following probability distribution of returns on stock XYZ. What is the expected return of stock XYZ? (Enter your answer as a percentage rounded to 2 decimal places. For example, enter 8.43%, instead of 0.0843) Probability Return 0.20 -3% 0.40 12% 0.40 27% Your Answer: Answer units View hint for Question 8 Question 9 (0.2 points) Calculate the expected return on a portfolio that contains 30% of a stock with an expected return of 1%...
Question 26 (1 point) Calculate the market to book ratio of a firm with a current share price of $31.12, a book value of equity of $3,000,000,000, and 99,000,000 shares outstanding. Round your answer to four decimal places. Your Answer D View hint for Question 26 Question 27 (1 point) If a company's profit margin is 6% and its total asset turnover is 2.5, what is its return on assets (ROA)? (Ehter your answers as a decimal rounded to 4...
A stock's price today is $24.50, and it is expected to pay out a dividend of $0.35 per share in one year. What is the stock's expected dividend yield? (Enter your answer as a decimal rounded to 4 decimal places, not a percentage). For example, enter.0153 instead of 1.53%.
26) A portfolio has 40% invested in stock A and the rest invested in stock B. If stock A has a beta of 1.3 and stock B has a beta of 0.9, what’s the beta of the portfolio? 27) Calculate the standard deviation of a portfolio that contains 40% of one stock with a standard deviation of 27% and 60% of another stock with a standard deviation of 13% and the correlation of their stock returns is 0.9. (Enter your...
Calculate the expected return on a portfolio that contains 30% of a stock with an expected return of 5% and 70% of a stock with an expected return of 6%. (Enter your answer as a percentage rounded to 2 decimal places. For example, enter 1.53% instead of .0153.) Your Answer: Question 9 options: Answer units
Calculate the expected return on a portfolio that contains 30% of a stock with an expected return of -4% and 70% of a stock with an expected return of 7%. (Enter your answer as a percentage rounded to 2 decimal places. For example, enter 1.53% instead of .0153.) Your Answer: Answer units