Each stock's rate of return in a given year consists of a dividend yield (which might be zero) plus a capital gains yield (which could be positive, negative, or zero). Such returns are calculated for all the stocks in the S&P 500. A weighted average of those returns, using each stock's total market value, is then calculated, and that average return is often used as an indicator of the "return on the market."

An analyst gathered the following information for a stock and market parameters: stock beta= 1.08; • expected return on the Market = 11.97%; • expected return on T-bills = 1.55%; • current stock Price = $9.01; • expected stock price in one year = $11.14; • expected dividend payment next year = $3.23. Calculate the expected return for this stock. Please share your answer as a percentage rounded to 2 decimal places.

You have estimated the following probability distributions of expected future returns for Stocks X and Y: Stock X Stock Y Probability Return Probability Return 0.1   -12 % 0.2   4 % 0.1   11   0.2   7   0.3   14   0.3   11   0.3   30   0.2   17   0.2   40   0.1   30   What is the expected rate of return for Stock X? Stock Y? Round your answers to one decimal place.Stock X:   % Stock Y:   % What is the standard deviation of expected returns for Stock X? For Stock Y? Round your answers to two decimal places.Stock X:   % Stock Y:   % Which stock would you consider to be riskier? is riskier because it has a  standard deviation of returns.

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 % %

Assume these are the stock market and Treasury bill returns for a 5-year period: Required: a. What was the risk premium on common stock in each year? b. What was the average risk premium? c. What was the standard deviation of the risk premium? (Ignore that the estimation is from a sample of data.) Complete this question by entering your answers in the tabs below. What was the standard deviation of the risk premium? (Ignore that the estimation is from a sample of data.) Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

An analyst gathered the following information for a stock and market parameters: stock beta = 1.23; expected return on the Market = 9.32%; expected return on T-bills = 4.75%; current stock Price = $9.08; expected stock price in one year = $13.1; expected dividend payment next year = $3.8. Calculate the expected return for this stock. Please share your answer as a percentage rounded to 2 decimal places.

You were analyzing a stock and came up with the following probability distribution of the stock returns.  What is the coefficient of variation on the company's stock?Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72.   State of the Economy Probability of State Occurring Stock's Expected Return Boom 20.00% 21.00% Normal 46.00% 14.60% Recession 34.00% 8.45%

You are given the following information concerning a stock and the market:   Returns Year Market Stock 2014   10 %   25 % 2015   12     28   2016   13     4   2017   −14     −22   2018   37     16   2019   15     23       a. Calculate the average return and standard deviation for the market and the stock. (Use Excel to complete the problem. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) b. Calculate the correlation between the stock and the market, as well as the stock’s beta. (Use Excel to complete the problem. Do not round intermediate calculations. Round your correlation answer to 2 decimal places and beta answer to 4 decimal places.)

If you look at stock prices over any year, you will find a high and low stock price for the year. Instead of a single benchmark PE ratio, we have a high and low PE ratio for each year. We can use these ratios to calculate a high and a low stock price for the next year. Suppose we have the following information on a particular company: High price Low price EPS Year 1 $ 62.18 40.30 2.35 a. High target price b. Low target price Year 2 $ 67.29 43.18 2.58 Year 3 $74.18 39.27 2.73 Year 4 $ 78.27 46.21 2.89 Earnings are expected to grow at 9 percent over the next year. a. What is the high target stock price in one year? Note: Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What is the low target stock price in one year? Note: Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.

You were analyzing a stock and came up with the following probability distribution of the stock returns.  What is the coefficient of variation on the company's stock?Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72.   State of the Economy Probability of State Occurring Stock's Expected Return Boom 20.00% 22.15% Normal 46.00% 17.35% Recession 34.00% 9.50%