Question

Student . Over the past six years, a stock produced returns of 12 percent, 16 percent, -3 percent, -7 percent, -3 pero and 9 percent. Based on these six years, what range of returns would you expect to see 95 percen A. -23.18 percent to 31.48 percent B.-18.58 percent to 26.58 percent C.-15.99 percent to 23.33 percent D.-10.69 percent to 22.69 percent E. -2.34 percent to 14.34 percent t of the time? 2. Beta is: A. another term for the market risk premium B. another term for diversifiable risk. C. another term for systematic risk D. measured by Total risk. E. measured by standard deviation 3. You purchased 100 shares of Jacksen Mobile stock five years ago and have earned annual returns of 17.8 percent, 23.9 percent, -2.1 percent, 15.6 percent and -13.0 percent. What is your arithmetic average return? A. 5.00 percent B. 7.23 percent C. 8.16 percent D. 8.44 percent E. 9.46 percent 4. One year ago, Ryan purchased 6,000 shares of MP stock for S93,000. Today, Ryan sold these shares for S29.18 a share. What is Ryan's capital gains yield on this investment if the dividend yield is 3.6 percent? A. 36.26 percent B. 42.22 percent C. 57.78 percent D. 66.88 percent E. 88.25 percent Scanned with CamScanner

Answer 1

1.
Option C
Lower end=NORMINV(0.025,(12%+16%-3%-7%-5%+9%)/6,sqrt((12%-(12%+16%-3%-7%-5%+9%)/6)^2+(16%-(12%+16%-3%-7%-5%+9%)/6)^2+(-3%-(12%+16%-3%-7%-5%+9%)/6)^2+(-7%-(12%+16%-3%-7%-5%+9%)/6)^2+(-5%-(12%+16%-3%-7%-5%+9%)/6)^2+(9%-(12%+16%-3%-7%-5%+9%)/6)^2)/sqrt(6-1))=-15.99%

2.
Option C

3.
Option D
=(17.8%+23.9%-2.1%+15.6%-13%)/5=8.440%

4.
Option E
=29.18*6000/93000-1
=88.258%