Find the mean of Terry's stock, giving the following information? Year Return 2011 22% 2012 -8% 2013 19% 2014 13% O 11.00% O 11.72% None of the listed items is correct O 13.49% O 11.50%
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Risk and return
Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary.
Capital Asset Pricing Model
Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.
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- A Moving to another question will save this response. Quèstion 8 What is the covariance of returns between stocks A and B? Year Returm A Retum B 2017 60% 35% 2016 20% 15% 2015 -20% -20% None of the listed items is correct O 733.33%2 O 27.08%2 O 20.00%2 O 10.00%2 A Moving to another question will save this response. MacB esc 20 F3 O00 F4 F2 F5 $ 4 # 3A Moving to another question will save this response. Question 1 How much will an investor pay for a preferred stock that pays a $0.50 per share dividend if the investor requires a 11.5% return? O $4.85 O $4.35 O $0.45 O s0.56 O None of the listed items is correct A Moving to another question will save this response. MacBook Air F1 F2 F3 D00 FA F5 F6 F7 F8 23 $ & * 3 4 6. 7 8 Q W E T Y D G C V N F.A MOVING toO anotner question will save this response. Question 15 You bought a stock for $39 and you received dividends of $4. The stock is now selling for $47. What is your total percentage return? (please answer in decimal numbers, ie., use 0.05 in stead of 5%) A Moving to another question will save this response. P Type here to search 9.
- -installed, but first we need to close some apps. Update now 2.1 3 .4.L:5.1.6.1 7.1. 8 9.1 10 | 11. 12 13 14. 15.I For questions (1-6) bold the correct answer or complete with your result if none is correct. (1-2) The expected return on a stock with a current price of 20 lei is 16%. The corporation is expected to deliver a dividend of 1.2 lei per share. [1] The dividend yield expected by the investor equals: (a) 4% (b) 6% (c) 8% (d) 12% [2] The selling price of the stock equals: (a) 22 lei (b) 24 lei (c) 26 lei (d) 30 lei (3-4) The table below presents the cash-flows associated to an investment project: Year 1. 2. Cash-flow -1000 700 800 [3] For a cost of capital of 10% the NPV equals: (a) 297.52 (b) 500 (c) 363.64 (d) 388.43 [4] The internal rate of return of the project is: (a) 28% (b) 31.05% |(c) 34% (d) 36.1% ndordA Moving to añother questlőn will save thls response. estion 16 What is the value of a share of a corporation's $480 preferred stock to an investor who requires a 12 percent return? O None of the listed choices is correct O $4.29 O $5.38 O $3.83 O $40.00 A Moving to another question will save this response. MacBook Air 30 F3 F1 F2 F4 F5 F6 #3 $ & 2 4 7 Q W R T Y A D F GNATOW5V-ERFOTQ5 FK15USSTS-QM37KrJrJm6X3YEPg3sw/formResponse S- Sampoerna... Dashboard Spotify- Web Player VitalSource Booksh. You purchased a share of stock for $12. One year later you received $0.25 as dividend and sold the share for $12.92. What was your holding period return?* A. 9.75% B. 10.65% C. 11.75% D. 11.25% E. none of the above Company XYZ's bonds have 7 years remaining to maturity. The bonds have a face value of $1,000 and yield to maturity of 8%. They pay interest annually and have a 9% coupon rate. What is the current yield? a. 8.45% b. 8.55% c. 8.65% d. 8.75% e none of the above O O O OO
- Search Review View Help E A A 而、三 三。 Ji Text Direction Y Align Text v 三三三、 n{} ☆ Arrange Quick Styles Y Convert to SmartArt Paragraph Drawing Examples Given the following information, what is the standard deviation of the returns on this stock? Probability of State of Economy 04 State of Economy Rate of Return Вoom .26 Normal 74 17 Recession 22 -44Using the stock table for Dell Technologies below, calculate the earnings per share. Round your answer to the nearest cent.Do not include the $ in your answer.Dell TechnologiesDVMT$66.26$66.40-$66.96$42.02-568.25NameSymbolCloseDay Range52-Week RangeVolumeP/EDividendDividend YieldEPS895,028103.53$0.000%?B LL 3. hUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity Saved Help Save & Exit A stock is expected to pay dividends of $.85 and $.90 in the next two years and sell for a price of $25 at the end of two years. What will an investor who expects a 12 percent rate of return be willing to pay for this stock? Multiple Choice $13.97 219.93 $20.65 < Prev 3 of 15 5:03 PM ere to search 12/1/2021 N I acer F10 F11 F12 PrtSc Pause Home F4 F5 F6 F7 81 Scr Lk SysRq Break Su -Backspace unN ) #3 E (Y P. R Home %D Enter H K. t Shift End マ 公 ופנ 目 A.
- 080 5. B_MBAF 605 LECTURE WEEK 2-4 [Protected View] - PowerPoint View Recording Help Nuance PDF O Tell me what you want to do Slide Show Review TRY QUESTIONS 4. You bought a stock at $90 last year. After one year, you received a dividend of $5.00, and then sold the stock for $98.00. Calculate the rate of return on your investment. Rudolph Co stock has just paid its annual dividend of $2.25. The expected growth rate of Rudolph is 7% in the long run. If your required rate of return is 16%, how much should you pay for a share of Rudolph stock? 美 Notes 同 27°C Light rain Comments 甲 c五 Chp 直 0 (D シ /6 f12 ins 144 prt sc delete home end + 5. レ。 6. backspace num lock [ homePROVIDE COMPUTATIONS!!! 10. What is the book value of the preference shares on December 31, 2018?a. P105 c. P100b. P110 d. P11511. What is the book value of the ordinary shares on December31 2018?a. P13.40 c. P14.15b. P14.52 d. P13.78Help Save & Exit A stock is expected to pay dividends of $2.00 and $2.20 in the next two years and sell for a price of $45 at the end of two years. What will an investor who expects a 10 percent rate of return be willing to pay for this stock? Multiple Choice $20.00 $40.83 Mc Hill 3:57 PM ype here to search 12/1/2021 F11 F12 PrtSc Pause Home Pg Up Pg Dn End F10 F5 F7 61 94 Scr Lk SysRq Break Ins -Backspace Lock 23 9. 8. (E } Home HEnter H. B t Shift Alt Gr 公 Alt