Consider a stock whose value increases across an 8-year period as shown in the table.Instructions: Round your answers to two decimal places.a. Calculate the percentage change in the value of the stock from year to year.Percent ChangeYear12345678Stock Value$80.0092.00107.00128.00145.00250.00400.00670.00%Vb. Calculate the percentage change in the value of the stock across the entire 8-year period.c. Do you think this qualifies as a bubble?&%4VN%O Yes, because the percentage change in the stock value is positive every year.O No, because the percentage change in the stock value has not increased.O Yes, because the percentage change in the stock value has increased greatly.O No, because the percentage change in the stock value fluctuates up and down across the 8 years.

Percentage cahnge in year on year can be computed by taking previous years price as base.

Consider a stock whose value increases across an 8-year period as shown in the table. Instructions: Round your answers to two decimal places. a. Calculate the percentage change in the value of the stock from year to year. Year Percent Change Stock Value $80.00 1 92.00 107.00 128.00 145.00 250.00 400.00 670.00 2 3 4 5 6 7 8 4 f $ V 4 3 b. Calculate the percentage change in the value of the stock across the entire 8-year period.

Consider a stock whose value increases across an 8-year period as shown in the table. Instructions: Round your answers to two decimal places. a. Calculate the percentage change in the value of the stock from year to year. Year Percent Change Stock Value $80.00 1 92.00 107.00 128.00 145.00 250.00 400.00 670.00 2 3 4 5 6 7 8 4 f $ V 4 3 b. Calculate the percentage change in the value of the stock across the entire 8-year period.

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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Suppose you bought a stock for $18.6 per share and you sold it for $41.9 after 2 years. The stock did not pay any dividends. What was your compound average monthly return from this investment? Answer in percent, rounded to two decimal places. Type your numeric answer and submit
Both a call and a put currently are traded on stock XYZ; both have strike prices of $50 and expirations of six months. Required: a. What will be the profit/loss to an investor who buys the call for $4 in the following scenarios for stock prices in six months? (Loss amounts should be indicated by a minus sign. Round your answers to 2 decimal places.) stock price profit/loss $ 40.00 $ 45.00 $ 50.00 $ 55.00 $ 60.00 b. What will be the profit/loss in each scenario to an investor who buys the put for $6? (Loss amounts should be indicated by a minus sign. Round your answers to 2 decimal places.)
Assume that you want to reindex with the index value at the beginning of the year equal to 100. What is the index level at the end of the year? (Round your answer to 2 decimal places.) Kirk, Inc. Picard Co. Shares Outstanding Index level 37,000 27,000 Price per Share Beginning of Year $ 52 77 End of Year $57 82
At the beginning of the year, you purchased a share of stock for $51.64. Over the year the dividends paid on the stock were $3.26 per share. Calculate the return if the price of the stock at the end of the year is $50.24. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places. (e.g., 32.16))
Use the times and corresponding closing prices of the stock to create coordinate pairs. Let x represent the number of weeks since the first data point, and let y represent the closing price at each time. So, x=0 represents the data point from 5 years ago. There are 52 weeks in a year, and you can write the time for each closing price recorded in terms of weeks that have passed since 5 years ago, when x=0. Fill in the table to represent your data as coordinate pairs. x (weeks since 5 yrs ago) most recent 260 7days ago 259 1 month ago 256 6 months ago 234 1 year ago 208 3 years ago 104 5 years ago 0 y (closing price, in $) most recent 7 days ago 1 month ago 6 months ago 1 year ago 3 years ago 5 years ago
A stock is bought for $23.25 and sold for $28.69 a year later, immediately after it has paid a dividend of $4.18. What is the capital gain rate for this transaction? NOTE: Enter the PERCENTAGE number rounding to two decimals. If your decimal answer is 0.034576, your answer must be 3.46. DO NOT USE the % sign. A stock is bought for $29.45 and sold for $35.96 a year later, immediately after it has paid a dividend of $3.97. What is the dividend yield for this transaction? NOTE: Enter the PERCENTAGE number rounding to two decimals. If your decimal answer is 0.034576, your answer must be 3.46. DO NOT USE the % sign. You own a portfolio that has $3,764 invested in Stock A and $7,514 invested in Stock B. If the expected returns on these stocks are 9.33% and 11.67%, respectively, what is the expected return on the portfolio? NOTE: Enter the PERCENTAGE number rounding to two decimals. If your decimal answer is 0.034576, your answer must be 3.46. DO NOT USE the % sign.
Stimpson Inc. preferred stock pays a $.50 annual dividend. What is the value of the stock if your required rate of return is .10? Instruction: Type your answer in dollars, and round to two decimal places
Using the data from the following table,calculate the return for investing in this stock from January 1 to December 31. Prices are after the dividend has been paid. Stock Price Dividend Jan 1 $50.18 Mar 31 $51.11 $0.58 Jun 30 $49.56 $0.58 Sep 30 $51.93 $0.75 Dec 31 $52.53 $0.75 The return from January 1 to March 31 is enter your response here. (Round to five decimal places.) Part 2 The return from March 31 to June 30 is enter your response here. (Round to five decimal places.) Part 3 The return from June 30 to September 30 is enter your response here. (Round to five decimal places.) Part 4 The return from September 30 to December 31 is enter your response here. (Round to five decimal places.) Part 5 enter your response here%. (Round to two decimal places.)
Need help with B
cks A and B have the following historical returns: Year 2016 2017 2018 2019 2020 Stock A's Returns, ra (17.90%) 30.00 13.25 (3.50) 29.75 Stock B's Returns, ra (14.20%) 22.70 a. Calculate the average rate of return for each stock during the period 2016 through 2020. Round your answers to two decimal places. Stock A 39.50 (7.10) 10.70 Stock B b. Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock 8. What would the realized rate of return on the portfolio have been each year? Round your answers to two decimal places. Negative values should be indicated by a minus sign. Year 2016 2017 2018 2019 2020 What would the average return on the portfolio have been during this period? Round your answer to two decimal places. Portfolio CV e. Assuming you are a risk-averse investor, would you prefer to hold Stock A, Stock B, or the portfolio? ele Calculate the standard deviation of returns for each stock and for the portfolio. Hound your answers to two decimal places.…
You purchase 115 shares of stock for $53 a share. The stock pays a $7 per share dividend at year- end. What is the rate of return on your investment for these end-of-year stock prices? What is your real (inflation-adjusted) rate of return? Assume an inflation rate of 5%. (Round your answers to 2 decimal places. Use the minus sign for negative numbers If it is necessary.) a. End-of-year stock price = $48 Rate of return Real rate b. End-of-year stock price = $53 Rate of return Real rate c. End-of-year stock price = $60 Rate of return Real rate
Discuss the overarching idea of Asset Liability Management and its key objectives. How does the process of Gap Analysis support Asset Liability Management?

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