Cindy in vested in a small stock whose price was $5.60. The following table shows the prices of the stock at the end of the first year, second year, and so on. Year Price ($) 1 7.71 2 7.07 3 14.41 4 21.71 5 14.71 Calculate the arithmetic mean rate of return and the geometric mean rate of return of the stock.

Q: What are the dividend yield, capital gains yield, and total percentage return?

A: The dividend yield is the return on security generated through the distribution of dividends. It is…

Q: At the start of the year, you purchased a single stock for $49.15 and one year later received a…

A: In the given case, we have provided the initial purchase price of a stock. It is the price at the…

Q: You purchased 320 shares of a particular stock at the beginning of the year at a price of $76.83.…

A: Number of shares (N) = 320 Beginning price (P0) = $76.83 Dividend (D1) = $1.70 Price at year end…

Q: Find the real rate of return for the Costco stock you purchased for $166.80 five years ago, that has…

A: Computation:

Q: The following table shows your stock positions at the beginning of the year, the dividends that each…

A: Portfolio return is the total gain or loss on an investment portfolio over a specified period of…

Q: You bought a stock at $22 last year. After one year, you received a dividend of $0.61 and then sold…

A: Whenever any share is being purchased as investment, some amount of profit share is being received.…

Q: You own a stock that had returns of 10.09 percent, −7.08 percent, 23.22 percent, and 15.73 percent…

A: Stock return in Year 1 (R1) = 10.09% Stock return in Year 2 (R2) = -7.08% Stock return in Year 3…

Q: Using the data in the table to the right, calculate the return for investing in the stock from…

A: In this question, we are required to determine the return for the entire period.

Q: You buy a stock for $125, receive a dividend of $12 and sell the stock for $95 one year…

A: Dollar return =Closing price - Opening price + Dividend Dollar return = $95 - $125 + $12 Dollar…

Q: Suppose you bought a stock for $22.7 per share and then sold it for $14.7 per share. In the mean…

A: Given: Purchase price = $22.7 Selling price = $14.7 Dividend = $1

Q: You purchase 100 shares of stock for $50 a share. The stock pays a $3 per share dividend at…

A: Holding period return includes capital gain and dividend amount received form the share in its…

Q: You purchase 100 shares of stock for $50 a share. The stock pays a $4 per share dividend at…

A: Rate of return on investment Rate of return on investment is calculated as shown below. Rate of…

Q: Nick’s Enchiladas has preferred stock outstanding that pays a dividend of $5 at the end of each…

A:

Q: You bought a stock for $76.81 and sold it after 4 years for $100.37. What is the average compound…

A: Compound annual growth rate (CAGR) is the average return on the investment which is there for more…

Q: Suppose you bought a stock for $ 41.4 per share and you sold it for $ 20.1 after 4 years. The stock…

A: Purchase price = $41.4Sales price = $20.1Period = 4 years

Q: Abigail bought 28 shares of stock at $30.00 per share. She received dividends of $49.50 during the…

A: ROI or Return on Investment: ROI is a financial ratio. It is used to calculate the return on…

Q: 4. At the beginning of the year, you purchase a share of stock for $50. Over the year the dividend…

A: Dividend discount model is a model which considers the discounted value of future dividends to…

Q: What is your holding period return if: a. You sell the stock for $44. b. You sell the stock for…

A: The holding period return (HPR) evaluates an investment's performance throughout the course of its…

Q: 1. You are given the following information for a stock that has a lognormal distribution: • The…

A: We have the median stock price for 1 year and 5 years. We have to find the median stock price for…

Q: Favorita candy's stock is expected to earn $4.30 per share this year. It's P/E ratio is 21.

A: The stock price is calculated by multiplying earning per share by the P/E ratio.

Q: The common stock of Placo Enterprises had a market price of ​$   9.11 on the day you purchased it…

A: The rate of retrun is calculated with the help of following formula  Return on Investment = Dividend…

Q: Using the data in the table to the right, calculate the return for investing in the stock from…

A: In this question, we are required to determine the percentage return for the entire period.

Q: The following table shows your stock positions at the beginning of the year, the dividends that each…

A: The portfolio return is the total profit or loss resulting from the performance of all the stocks in…

Q: A stock pays $0.2 dividend per share annually. An investor bought one share of stock at $2 at the…

A: The time-weighted geometric return is used to find out the average return based on the actual…

Q: ​(Calculating rates of​ return)  The common stock of Placo Enterprises had a market price of ​$9.96…

A: Solution:- Rate of return means the percentage of extra amount earned on initial amount invested.

Q: (Calculating the geometric and arithmetic average rate of return) The common stock of the Brangus…

A: Stocks or equity in a corporation represents fractional ownership in the organization. The units…

Q: Tom bought a stock at $62.97 per share and sold it a year later for $75.28 per share. During the…

A: Given: Dividend = $2.65 Purchase price = $62.97 Sale price = $75.28

Q: What is the “total return” on your investment?  (remember, total return is more than ju

A: Purchase price=$10 selling price $11 dividend paid $1

Q: ou bought a stock at $21 last year. After one year, you received a dividend of 50.6 and then sold…

A: We make financial investments with the expectation to get a return from that investment. The most…

Q: You bought a share of 3.92 percent preferred stock ($100 par value) for $95.88 last year. The market…

A: The problem case focuses on calculating the total return given by the preferred stock. The total…

Q: 2. The following table presents the logarithmic returns of stocks A,B and C over three years: Month…

A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: You own a stock that had total returns of -1.3, 14.23, 5.52, 12.72, -7.71, 17.54, 5.06 (all in…

A: The formula to calculate arithmetic average return is given below:

Q: Last year, Julie Johnson bought one share of common stock for $900. During the year, Julie received…

A: Purchasing price of common stock is $900 Dividend received during holding is $69.50 Selling price of…

Q: Suppose you bought a stock for $18.6 per share and you sold it for $41.9 after 2 years. The stock…

A: Here,Purchase value is $18.6Sell Value is $41.9Time Period is 2 yearsCompounding Frequency is…

Q: You own a stock that had returns of 13.17 percent, −16.64 percent, 22.46 percent, and 20.69 percent…

A: The arithmetic average return is a measure of the mean, or average, of a set of returns. It is…

Q: Using the data from the following​ table,calculate the return for investing in this stock from…

A: Given:   Stock price Dividend 1-Jan $50.18   31-Mar $51.11 $0.58 30-Jun $49.56 $0.58…

Q: Calculating Return Components An investor purchases one share of stock for $50. After one year,…

A: Dividend yield refers to the percentage of the annual dividend paid by a company relative to its…

Q: On January 1, you bought 100 shares of ABD stock for $19/share with funds that you borrowed at an…

A: IRR is also known as Internal rate of Return. It is a capital budgeting technique which helps in…

Q: You invested in a stock with a price of $46.92. You sold the stock a year later for $52.86. During…

A: Information Provided: (Initial value) Price = $46.92 (Ending value) Price = $52.86 Dividend = $0.85

Q: You purchased a stock at a price of $70.72. The stock paid a dividend of $2.03 per share and the…

A: Purchase price of stock = $ 70.72 Price of stock after 1 year = $ 63.02

Q: Under dollar-cost averaging (cedi cost averaging), an investor will purchase GHS6,000 worth of stock…

A: Average cost per share is the cost which is incurred to buy a particular share. Average price per…

Q: What is the SD for a stock that has annual returns for 4 years 6%,-4%,8% and -12%?  9.0 9.3 9.6…

A: A statistical measure that represents the variation in the return on the stock is term as the…

Q: You purchased a stock for $53.4 a share and resold it one year later. Your total return for the year…

A: Given information  Purchasing price of stock = $53.4 Total return = 10.62% Dividend yield = 6.18%

Q: Using the data in the table to the right, calculate the return for investing in the stock from…

A: The return on stock will be found by finding the geometric mean of the return for each period which…

Q: ock for $50 and over the next year, receives a $0.75 dividend. At the end of the year, the stock is…

A: The difference in nominal terms between the final value and the initial value is the dollar return.…

Q: (Solving a comprehensive problem) Use the end-of-year stock price data in the popup window, to…

A: Rate of return:The lending industry has run a revolution across the globe through the early 2000s.…

Q: You purchased a stock at a price of $48.01. The stock paid a dividend of $1.87 per share and the…

A: Dividend yield of the stock is calculated as Dividend yield = Dividend paid during the yearStock…

Stock Yields

The stock yield is otherwise known as the dividend yield. The dividend yield is an annual payment of the stock dividends to the holder of a firm’s stock. The dividend yield is a financial ratio to measure the value of dividend payout every year for the relative stock price. The yield of a stock is usually shown in a percentage that discloses the expected future earnings from stock depending on the current stock price in the future. Stock yield will change depending on the market fluctuations and in accordance with the market fluctuations, the dividends will be increased or decreased by the firm.