Consider the three stocks in the following table. P+ represents price at time t, and Qt represents shares outstanding at time t. Stock Csplits two-for-one in the last period.PO985810051103e200116200531261002002001031005363200400Required:Calculate the first-period rates of return on the following indexes of the three stocks: (Do not round Intermediate calculations. Roundyour answers to 2 decimal places.)a. A market value-weighted IndexRate of returnAn equally weighted indexate of return%%

Rate of return is a financial metric that measures the gain or loss of an investment relative to its…

three stocks in the following table. Pe represents price at time t and Qe represents shares outstanding at time t. Stock C spilts two-for-one in the last period. PD 98 FL 61 B 58 C 116 100 200 200 103 100 103 100 53 126 200 200 53 200 63 400 Required: Calculate the first-period rates of return on the following indexes of the three stocks: (Do not round Intermediate calculations. Roun your answers to 2 decimal places.) a. A market value-weighted Index Rate of return An equally weighted index e of return % %

three stocks in the following table. Pe represents price at time t and Qe represents shares outstanding at time t. Stock C spilts two-for-one in the last period. PD 98 FL 61 B 58 C 116 100 200 200 103 100 103 100 53 126 200 200 53 200 63 400 Required: Calculate the first-period rates of return on the following indexes of the three stocks: (Do not round Intermediate calculations. Roun your answers to 2 decimal places.) a. A market value-weighted Index Rate of return An equally weighted index e of return % %

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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What is the required rate of return on a preferred stock with a $50 par value, a stated annual dividend of 9% of par, and a current market price of (a) $31, (b) $40, (c) $52, and (d) $74 (assume the market is in equilibrium with the required return equal to the expected return)? Do not round intermediate calculations. Round the answers to two decimal places.
How can I calculate geometric average in Excel?
A stock has had the following year-end prices and dividends: Year 1 2355N 4 6 Price $ 64.63 71.50 77.30 63.57 73.71 82.75 Dividend Arithmetic average return Geometric average return $.66 .71 .77 .86 .93 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.g., 32.16. % %
pm.3
A stock has had returns of 16.72 percent, 12.20 percent, 5.90 percent, 26.86 percent, and −13.49 percent over the past five years, respectively. What was the holding period return for the stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Use the portion of the stock table shown below to answer the questions that follow. Round dollar amounts to the nearest cent, if necessary. YTD %CHG 52- HI Week LO STOCK DIV YLD % VOL 100s CLOSE NET CHG 2.8 37.43 21.10 A1 0.99 3.7 789 27.02 –0.1 2.4 48.30 30.78 B1 ... 1303 41.68 0.4 If you purchased 400 shares of B1 stock at $45.03, what would the loss be if the shares were sold at the closing price indicated in the table.
You construct a price-weighted index of 49 stocks. At the beginning of the day, the index is 6,725.88. During the day, 48 stock prices remain the same, and 1 stock price increases $5.70. At the end of the day, your index value is 6,749.19. What is the divisor on your index? Note: Do not round intermediate calculations. Round your answer to 8 decimal places. what is the Divisor?
Use the data below to construct the advance/decline line for the stock market. Volume figures are in thousands of shares. (Input all amounts as positive values. Do not round intermediate calculations. Round your answers to the nearest whole number.) StocksAdvancing AdvancingVolume StocksDeclining DecliningVolume Monday 1,809 703,133 1,335 551,144 Tuesday 1,941 603,360 1,311 452,797 Wednesday 1,815 624,994 1,343 720,931 Thursday 2,480 1,114,410 550 174,342 Friday 1,688 511,962 1,472 496,960
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.)
Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. Stock C splits two-for-one in the last period. A B C Po 82 42 84 Rate of return 00 100 Divisor 200 200 P1 87 37 94 01 100 200 200 % P2 87 Required: a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (t = 0 to t= 1). (Do not round intermediate calculations. Round your answer to 2 decimal places.) 370 47 92 100 200 400 b. What will be the divisor for the price-weighted index in year 2? (Do not round intermediate calculations. Round your answer to 2 decimal places.) c. Calculate the rate of return of the price-weighted index for the second period (t=1 to t=2).
A stock has had returns of -19.1 percent, 29.1 percent, 25.2 percent, -10.2 percent, 34.9 percent, and 27.1 percent over the last six years. 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 % %
A stock has had the following year-end prices and dividends: Year 1234 in 10 5 6 Price $64.68 71.55 77.35 63.62 73.81 83.25 Dividend Arithmetic average return. Geometric average return $.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.g.. 32.16. % %

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