Consider the following information on large-company stocks for a period of years. Large-company stocks Inflation Arithmetic Mean a. Nominal return b. Real return a. What was the arithmetic average annual return on large-company stocks in nominal terms? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What was the arithmetic average annual return on large-company stocks in real terms? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. 14.38 4.2 % %

Consider the following information on large-company stocks for a period of years. Large-company stocks Inflation Arithmetic Mean a. Nominal return b. Real return a. What was the arithmetic average annual return on large-company stocks in nominal terms? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What was the arithmetic average annual return on large-company stocks in real terms? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. 14.38 4.2 % %

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 17P

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Consider the following information on large-company stocks for a period of years. Arithmetic Mean 12.78 3.3 Large-company stocks Inflation a. What was the arithmetic average annual return on large-company stocks in nominal terms? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What was the arithmetic average annual return on large-company stocks in real terms? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. Nominal return b. Real return 12.70% 10.26 %
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A stock has had the following year-end prices and dividends: Year Price Dividend 1 $ 64.93 — 2 71.80 $ .72 3 77.60 .77 4 63.87 .83 5 74.31 .92 6 85.75 .99 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 has had the following year-end prices and dividends: Price $64.68 Year 1 2 3 4 6 71.55 77.35 63.62 73.81 83.25 Dividend Arithmetic average return Geometric average im $.67 .72 .78 .87 94 What are the arithmetic and geometric returns for the stock? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e. 1%
A stock has had the following year-end prices and dividends: Year Price 1 $65.03 23456 71.90 77.70 63.97 74.51 86.75 Dividend - $.74 .79 .85 .94 1.01 What are the arithmetic and geometric returns for the stock? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Arithmetic average return Geometric average return % %
1. A stock has had the following year-end prices and dividends: Year Price ($) Dividend ($) 94.17 92.21 1.05 96.1 1.2 96.3 1.57 94.16 1.66 96.46 1.69 What is the geometric average return for the stock? Answer as a percentage to two decimals (if you get -0.0435, you should answer -4.35).
Based on the following information: State of Economy Probability of State of Economy Return on Stock J Return on Stock K Bear .20 -.030.024 Normal .55.128.052 Bull .25 .208.082 a. Calculate the expected return for each of the stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation for each of the stocks. ( Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g , 32.16.) c. What is the covariance between the returns of the two stocks? (Do not round intermediate calculations and round your answer to 6 decimal places, e.g., .161616.) d. What is the correlation between the returns of the two stocks? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., .1616.)
Given the data in the table, calculate Beta and Covariance.
Suppose a stock had an initial price of $86 per share, paid a dividend of $1.70 per share during the year, and had an ending share price of $72.50. a. Compute the percentage total return. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the dividend yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What was the capital gains yield? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
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