A stock had returns of 3%, 12%, 26%, - 14%, and - 1% for the past five years period based on these returns, what is the approximate probability that the stock will return at least 20% in any one given year?

Q: You invest in a stock for four years. The returns for the four years are 20%, -10%, 15%, and -5%.…

A: Arithmetic Average return refers to the return on an investment which takes into consideration the…

Q: Next year, a share of stock will pay an annual dividend of $2.50 (D₁), and that this dividend is…

A: The minimum return an investor anticipates from an investment to balance the investment's risk is…

Q: A stock is expected to pay a dividend of $2.20 at the end of the year (D1 = 2.2). The required rate…

A: The current stock value refers to the current price at which a particular stock is trading in the…

Q: are of stock with a beta of 0.78 currently sells for $53. Investors expect the stock to pay a…

A: The price of stock can be found out from the dividend growth discount model based on required rate…

Q: A stock had returns of 14 percent, 13 percent, −10 percent, and 7 percent for the past four years.…

A: Range of stock refers to the stock price which defines the starting and ending price in a specified…

Q: For the next five years, the annual dividends of a stock are expected to be P2, P2.10, P2.20, P3.50…

A: Year Particulars Amount 1 Dividend 2.00 2 Dividend 2.10 3 Dividend 2.20 4 Dividend 3.50 5…

Q: A stock is expected to pay a dividend of $0.55 for each quarterly in the next four quarters. The…

A: Variables in the question: Description DataExpected dividend each quarter ($)0.55Required rate of…

Q: A stock price is currently $60. It is known that returns on the stock are normally distributed with…

A: The percentage change is the stock trading statistic that employs simple mathematics to determine…

Q: what is inflation if the real risk-free rate is 7%?

A: Inflation refers to the state in which the prices of the goods and services increases as compare to…

Q: Year Return 1 234 0.08 (or 8%) 0.10 (or 10%) 0.15 (or 15%) 0.20 (or 20%) 0.10 10%)

A: Holding period return is rate of return realized during the period of holding of stock.

Q: s. What is the geometric average return for this time period?

A: Geometric Average: It is the average return for a set of values computed with the products of the…

Q: A stock is expected to pay a dividend of $1.26 at the end of the year. The required rate of return…

A: Formula: Current stock = Expected dividend/(Required rate - Growth rate)

Q: Consider a stock which realized the following historical return over the last three years: -6% in…

A: Standard deviation is the measure of risk of the rate of return of the stock and it shows the…

Q: A stock is expected to pay a dividend of $2.75 at the end of the year (i.e., D1 = $2.75), and it…

A: Quantum and timing of dividends from a stock are known to us. We have to find the stock's expected…

Q: Stock prices over 5 months are observed to be $110.00, $115.00, $98.00, $107.00, and $112.00. What…

A: The annualized standard deviation for the given prices of the stock over the months can be found by…

Q: Suppose a stock has generated the following annual returns: 13.6%, -12.1% and 7.6%. What was its…

A: Annual returns are as follows13.6%-12.1%7.6%

Q: What is the 5-day 99% VaR

A: Value at risk is a quantitative metric that is used to evaluate the possibility of a financial loss…

Q: ects to pay its first dividend at the end of the year. The first dividend is expected to be $0.75…

A: The variable growth rate of dividend is possible in growth companies and price of stock can be found…

Q: The following information is for the next three problems.. Over the last four years ending July 1,…

A: Arithmetic average is the simplest average and can be obtained by adding all and divided by the…

Q: If stock A earned 15% annual returns 3 years before, 5% annual returns 2 years before and 4% annual…

A: r1=15%r2=5%r3=4%Required is to calculate coefficient of variation.

Q: Suppose a stock has generated the following annual returns: 11.4%, -7.9% and 5.4%. What was its…

A: Here,Annual Return are as follows:11.4%-7.9%5.4%

Q: A stock is expected to pay a dividend of S0.75 at the end of the year. The required rate of return…

A: The Dividend Growth Model refers to a model that helps in calculating the intrinsic value of a stock…

Q: Analysts expect Exxon Mobil stock to pay a dividend of $3.43 in 1 year and is expected to sell for…

A: Expected dividend of Stock in year 1(D1) = $3.43 Expected Selling Price of Stock in year 1(P1) =…

Q: A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return…

A: Next Year dividend = d1 = $0.75 Required Rate of Return = r = 10.5% Growth Rate = g = 3%

Q: A stock has a required return of 13%, and a retention rate of 40%. The stock’s price-earnings…

A: Growth rate refers to the rate which reflects the changes in the values of the numerical figures…

Q: A preferred stock will pay a dividend of $1 per year. If the annual return is 7.63%, what is the…

A: Stock price today = Annual dividend / Annual return where, Annual dividend = $1 Annual return =…

Q: A stock had returns of 11.57 percent, -15.55 percent, 21.95 percent, 27.00 percent, and 10.50…

A: Let the stock return for the year t be rt.Given,r1= 0.1157r2= 0.1555r3= 0.2195r4= 0.2700r5=0.1050

Q: A stock just paid an annual dividend of $7.75 per share. The expected growth rate of the dividend is…

A: Growth rate = 0.1012 or 10.12% Required rate of return = 0.1197 or 11.97% Dividend yield = ?…

Q: A company is expected to pay a dividend in each of the next three years of $4.10, $4.45, and $4.90,…

A: The DDM refers to the use of dividends to measure the financial health of the company and use them…

Q: Perferred Stock valuation. Stock that sells for $30.00 a share and pays dividend of $2.75 at the end…

A: Formula:

Q: Annual returns of Stock in the past 5 years are presented in the following table: Year 1 Year 2…

A: The standard deviation quantifies the degree of deviation from the expected return,  It is an…

Q: A stock is expected to earn 10.0% over the next year with a 40% probability and 3.0% otherwise. What…

A: Market Condition Probability Return on A 1 40% 10% 2 60% 3% To Find: Standard Deviation

Q: A stock is expected to pay dividends in 8 periods.  The first dividend will be $2.55 and subsequent…

A: The current value of the firm or stock is the present value of all the future dividend payments…

Q: A stock you are evaluating just paid an annual dividend of $2.80. Dividends have grown at a constant…

A: Given details are : Recent dividend (D0) = $2.80 Growth rate (g) = 2.6% = 0.026 Required rate of…

Q: Suppose that during a 10 year period, a corporation's stock has a 2:1 split. By what percent would…

A: Stock splits are corporate actions in which a company increases the number of its outstanding shares…

Q: A stock will pay a dividend of $3.5 and is expected to sell for $87.8 in one year.  If the current…

A: A stock's return is the change in its price over a period of time, plus any dividends or other…

Q: Tom Teller, Inc.'s stock has had the following annual returns over the past 5 years: +14.2%; -9.8%.…

A: The compound annual growth rate (CAGR) is the rate of return (RoR) that would be required for an…