A stock has had the following year-end prices and dividends:Year1PriceDividend$43.41248.39$0.66357.310.69445.390.80552.310.85661.390.93What are the arithmetic and geometric returns for the stock? (Do not round intermediate calculations. Round the final answers to 2decimal places.)

Step 1: Calculate the Holding Period Returns (HPR) for Each YearTo find the returns for each year,…

Answered: A stock has had the following year-end…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A stock has had returns of 39.00 percent, 23.00 percent, 34.00 percent, -11.00 percent, 21.00 percent, and -53.00 percent over the last six years. What are the arithmetic and geometric returns for the stock? (Do not round intermediate calculations. Round the final answers to 2 decimal places.) Arithmetic average return Geometric average return
Consider the following stock price and shares outstanding information. PWIyear 1: PWIYear 2: a. Compute the beginning and ending values for a price-weighted index and a market-value-weighted index. Assume a base value of 100 and Year 1 as the base period. Do not round intermediate calculations. Round answers to two decimal places. VWIyear 1: VWIYear 2: DECEMBER 31, Year 2 Shares DECEMBER 31, Year 1 Shares Outstanding Price Outstanding 107,000,000 $29 107,000,000 2,500,000 48 29,000,000 43 5,000,000² 29,000,000 % % Price $22 70 39 b. Compute the percentage change in the value of each index during the year. Do not round intermediate calculations. Round your answers to two decimal places. Percentage change in PWI: % Stock K Stock M Stock R aStock split two-for-one during the year. Percentage change in VWI: c. Compute the percentage change for an unweighted index assuming $1,000 is invested in each stock. Do not round intermediate calculations. Round your answer to two decimal places.
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Allagash Corporation stock moves from $108 at the beginning of the period to $124 at the end of the period, and in addition, pays $2 in dividends at the end of the period. What is the rate of return in percent on Allagash stock (two-place accuracy)? For a two-place accuracy in percent, you need four-place accuracy as a rate of return!
What was the dollar-weighted (money-weighted) rate of return?
A stock has had returns of 12 percent, 30 percent, 17 percent, -18 percent, 30 percent, and -7 percent over the last six years. What are the arithmetic and geometric average returns for the stock? (Do not round Intermedlate calculations and enter your answers as a percent rounded to 2 declmal places, e.g., 32.16.) Arithmetic average return Geometric average return < Prev 14 of 30 Next EA9F9D41-D35...jpeg 8A1B4474-4751.jpeg 8A1B4474-4751..jpeg
Suppose a stock had an initial price of $56 per share, paid a dividend of $1.60 per share during the year, and had an ending share price of $50. Compute the percentage total return, dividend yield, and capital gains yield. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
A stock has had the following year-end prices and dividends: Year Price Dividend 1 $ 65.13 — 2 72.00 $ .76 3 77.80 .81 4 64.07 .87 5 74.71 .96 6 87.75 1.03 What are the arithmetic and geometric returns for the stock? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
A stock had the following year-end prices and dividends: Year 0 1 23 Multiple Choice O Price $ 60.55 72.46 62.98 73.50 What was the arithmetic average return for the stock? O O 12.61% 10.09% Dividend 9.02% $ 1.29 1.63 1.64
Bhupatbhai
Suppose a market consists of four stocks. The number of shares outstanding for each stock as well as the stock prices in two consecutive days are as follows: Stock A Stock B Stock C Stock D Shares outstanding 200 1000 400 3000 I $5 $30 $100 $40 Ро $15 $25 $80 $50 a) Compute the percentage increase in the price-weighted index for this market. b) Compute the percentage increase in the value-weighted index for this market. P₁
The following table displays hypothetical stock quotations. Use the information in the table to answer the questions that follow. Listed Stock Quotes Company Ticker High Low Last Price* Net Change** YTD %*** Div. Yield P/E Ratio Realtime RT 112.88 82.10 102.62 3.08 1.49 0 37 MarlRedBiro MRB 37.43 24.47 28.79 -0.27 7.02 5.9 16 TStar TS 362.69 235.75 302.24 1.10 4.85 1.5 27 *Last price for the day **Net change in price from previous day ***Year-to-date percentage change in stock price Of the three stocks listed, a retiree who lives partially off of investment income would be best off holding because of its . You can calculate that Realtime had per-share earnings for the most recent 12-month period of . If you had purchased 100 shares of TStar stock yesterday at the last price of the day, you would have of if you sold all 100 shares at the last price today.

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