Question 3 The price history of stock ABC from year 0 to year 2 is as follows: Po P P₂ $50 $40 $60 a. What are the holding-period returns of stock ABC for the first year, for the second year, and for the entire period? b. What are the arithmetic and geometric average returns over this 2-year period?
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- A stock has had the following year-end prices and dividends: Year Price Dividend 1 $ 64.43 — 2 71.30 $ .62 3 77.10 .67 4 63.37 .73 5 73.31 .82 6 80.75 .89 What are the arithmetic and geometric returns for the stock?What is Stock X's geometric returns if it has the following returns? Year 1 8% Year 2 - 5% Year 3 10% Year 4 - 6% Year 5 15% a. 4.1%. b. 5.2% c. 6.8% d. 8.5%A stock has had the following year-end prices and dividends: Year 1 Price $ 64.43 Dividend 2 71.30 $ .62 3 77.10 .67 4 63.37 .73 5 73.31 .82 6 80.75 .89 What are the arithmetic and geometric returns for the stock?
- Question 1 Consider the three stocks in the following table. P, represents price at time t, and Qt represents shares outstanding at time t. Po Qo P₁ Q₁ 50 100 60 100 A IB 30 200 24 200 C 20 200 30 200 a. Calculate the rate of return on a price-weighted index of the three stocks b. Calculate the rate of return on a market value-weighted index of the three stocksAssume these are the stock market and Treasury bill returns for a 5-year period: T-Bill Return Year Stock Market Return (8) (8) 2016 32.50 0.07 2017 11.80 0.07 2018 -2.40 0.07 2019 13.70 0.25 2020 22.40 0.27 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. Required A Required B Required C What was the risk premium on common stock in each year? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Negative values should be entered with a negative sign.. Year Risk Premium 2016 % 2017 % 2018 % 2019 % 2020 %1. A stock has had the following year-end prices and dividends: Dividend ($) Year 1 2 3 4 5 6 Price ($) 93.75 94.42 95.5 93.24 94.65 97.9 1.38 1.36 1.72 1.76 1.95 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).
- What is the expected return of Stock A given the information below about its returns across future states of nature? Enter return in decimal form, rounded to 4th digit, as in "0.1234A stock has had the following year-end prices and dividends: Year Price 0 012345 1 $ 15.00 17.18 18.18 16.68 19.02 22.13 Dividend $ 0.15 0.38 0.40 0.42 0.48 What are the arithmetic and geometric returns for the stock? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Arithmetic return Geometric return % %Consider the three stocks in the following table. P, represents the price at time t, and Q, represents the total shares outstanding at time t. Calculate the rate of return on a price-weighted index of three stocks for the first period (t=0 to t=1). Table 2: Data for Q4 & Q5 Q0 P1 Q1 PO 100 50 105 50 A B 200 100 210 100 C 300 100 250 100
- A stock has had the following year-end prices and dividends: Year 0 1 ~ 34 2 5 Arithmetic returns Geometric Price $ 32.5 returns 34.68 35.68 34.18 36.52 39.63 What are the arithmetic and geometric returns for the stock? (Round your answer to 2 decimal places. Omit the "%" sign in your response.) Dividend $ 0.15 0.31 1.63 0.22 % 0.411. Consider the three stocks in the following table. Pt represents price at time 1, and Q represents shares outstanding at time. Stock C splits two-for-one in the last period. B C PO 81 41 82 00 100 200 200 PI 86 36 92 01 100 200 200 P2 86 36 46 02 100 200 400 a. Calculate the rate of return on a price-weighted index of the three stocks for the first period ( 0 to 1=1). b. What will be the divisor for the price-weighted index in year 2? c. Calculate the rate of return of the price-weighted index for the second period (/= 1 to/= 2). d. Calculate the return on a value-weighted index of the three stocks for the first period (= 0 to 1 = 1).Find the annualized holding rate of return and the average rate of return for a stock that returned -30% in year 1 and +30% in year 2. Annualized holding rate of return = -7.00% A. -9.00% B. -15.00% C. 0.00%