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##### Question 10 1. Suppose the returns for Stock A f...

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Question 10 1. Suppose the returns for Stock A for last six years was 4%, 7%, 8%, -2%, 9%, and 7%. Compute the standard deviation of the returns. Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. Answer: Question 11 1. Suppose the real rate is 4.53% and the inflation rate is 4.12%. Solve for the nominal rate. Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. Answer: Question 12 1. Based on the following information, calculate the expected returns: Prob Return Recession30% 3.6% Boom 70% 3% Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 12.345% then enter as 12.35 in the answer box. Answer: Question 13 1. You have observed the following returns on ABC's stocks over the last five years: 4.9%, 9.1%, 10.3%, 11.8%, 7.6% What is the geometric average returns on the stock over this five-year period. Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. Answer: Question 14 1. Suppose a stock had an initial price of $89.33 per share, paid a dividend of $5.4 per share during the year, and had an ending share price of $88.95. What are the dollar returns? Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box. Answer: Question 15 1. You have observed the following returns on ABC's stocks over the last five years: 4.6%, 8.7%, -8.8%, 11.1%, -6.2% What is the arithmetic average returns on the stock over this five-year period. Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. Answer: Question 16 1. You have observed the following returns on ABC's stocks over the last five years: 2.1%, 8.6%, 6.6%, 12.5%, 3.6% What is the arithmetic average returns on the stock over this five-year period. Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. Answer: Question 17 1. Suppose a stock had an initial price of $75.92 per share, paid a dividend of $8.6 per share during the year, and had an ending share price of $95.62. If you own 327 shares, what are the dollar returns? Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box. Answer: Question 18 1. Suppose a stock had an initial price of $87.89 per share, paid a dividend of $4.1 per share during the year, and had an ending share price of $97.77. What are the percentage returns? Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. Answer: Question 19 1. Suppose a stock had an initial price of $76.63 per share, paid a dividend of $5.7 per share during the year, and had an ending share price of $103.61. What are the percentage returns? Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. Answer: Question 20 1. Calculate the expected returns of your portfolio Stock Invest Exp Ret A $309 4.8% B $849 14.9% C $474 24.7% Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 12.345% then enter as 12.35 in the answer box. Answer: Question 21 1. Suppose a stock had an initial price of $94.17 per share, paid a dividend of $5.5 per share during the year, and had an ending share price of $96.07. What are the percentage returns if you own 25 shares? Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. Answer: Question 22 1. You own a portfolio invested 26.92% in Stock A, 16.74% in Stock B, 27.67% in Stock C, and the remainder in Stock D. The beta of these four stocks are 0.31, 0.69, 0.98, and 0.51. What is the portfolio beta? Note: Enter your answer rounded off to two decimal points. For example, if your answer is 12.345 then enter as 12.35 in the answer box. Answer: Question 23 1. Suppose the real rate is 2.02% and the nominal rate is 8.42%. Solve for the inflation rate. Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. Answer: Question 24 1. Calculate the expected returns of your portfolio Stock Invest Exp Ret A $318 7.6% B $790 17.1% C $1,929 21.9% Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 12.345% then enter as 12.35 in the answer box. Answer: Question 25 1. You have observed the following returns on ABC's stocks over the last five years: 4.6%, 9.2%, -11.6%, 10.8%, -4.3% What is the geometric average returns on the stock over this five-year period. Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. Answer: Question 26 1. Suppose the nominal rate is 9.21% and the inflation rate is 4.26%. Solve for the real rate. Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. Answer: Question 27 1. You own a portfolio invested 17.6% in Stock A, 15.43% in Stock B, 20.82% in Stock C, and the remainder in Stock D. The beta of these four stocks are 0.81, 1.41, 0.84, and 0.83. What is the portfolio beta? Note: Enter your answer rounded off to two decimal points. For example, if your answer is 12.345 then enter as 12.35 in the answer box. Answer: Question 28 1. A portfolio is invested 43.8% in Stock A, 29.8% in Stock B, and the remainder in Stock C. The expected returns are 10.7%, 27.4%, and 18.5% respectively. What is the portfolio's expected returns? Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 12.345% then enter as 12.35 in the answer box. Answer:

Paper#6995 | Written in 18-Jul-2015

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