You have the following rates of return for a risky portfolio for several recent years. Assume that the stock pays no dividends. Year Beginning of Year Price # of Shares Bought or Sold 2014 $ 100 bought 2015 $ 50 bought 2016 $ 75 sold 2017 $ 75 sold What is the dollar-weighted return over the entire time period? 2.6% 2.21% .74% 2.87% 50.00 55.00 51.00 54.00
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- A stock is trading at $80 per share. The stock is expected to have a yearend dividend of $4 per share (D1 = $4), and it is expected to grow at some constant rate, g, throughout time. The stock’s required rate of return is 14% (assume the market is in equilibrium with the required return equal to the expected return). What is your forecast of gL?You have the following rates of return for a risky portfolio for several recent years. Assume that the stock pays no dividends. Year Beginning of Year Price # of Shares Bought or Sold 2016 $ 50.00 100 bought 2017 $ 55.00 50 bought 2018 $ 51.00 75 sold 2019 $ 54.00 75 sold What is the dollar-weighted return over the entire time period? Multiple Choice 0.74% 2.87% 2.6% 2.21%You have the following rates of return for a risky portfolio for several recent years. Assume that the stock pays no dividends. Year Beginning of Year Price # of Shares Bought or Sold 2016 $50.00 100 bought 50 bought 75 sold 2017 $55.00 2018 $51.00 2019 $54.00 75 sold What is the geometric average return for the period? Multiple Choice 2.87% 2.60% 0.74% 2.21%
- You have the following price for a stock for several recent years. Assume that the stock F year Begining of year price # of shares bought or sold 2005 $50 100 bought 2006 $55 50 bought 2007 $51 75 sold 2008 $54 75 sold What is the holding period return for each year? What is the geometric average return for the period? What is the dollar weighted return for the time period?You have the following rates of return for a risky portfolio for several recent years. Assume that the stock pays no dividends. Year 2016 2017 2018 2019 3.92% 1.94% What is the geometric average return for the period? 2.60% Beginning of Year Price $50 $55 $51 $54 5.21% # of Shares Bought or Sold 150 bought 100 bought 125 sold 125 soldSuppose your expectations regarding the stock price are as follows: State of the Market Probability Ending Price HPR (includingdividends) Boom 0.30 $ 140 53.5 % Normal growth 0.28 110 17.5 Recession 0.42 80 −12.0 Use the equations E(r)=Σsp(s)r(s)E(r)=Σsp(s)r(s) and σ2=Σsp(s) [r(s)−E(r)]2σ2=Σsp(s) [r(s)−E(r)]2 to compute the mean and standard deviation of the HPR on stocks. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
- You have the following rates of return for a risky portfolio for several recent years. Assume that the stock pays no dividends. Year 2014 2015 2016 2017 Multiple Choice о Beginning of Year Price $30 $35 $31 $34 What is the geometric average return for the period? O о 8.56% 3.18% 4.26% # of Shares Bought or Sold 110 bought 60 bought 6.46% 85 sold 85 sold. You have observed the following returns over time: Stock X Stock Y Year Price Div Price Div Market Returns 2005 20 0 11 0 0 2006 24 1.2 13 1.6 0.25 2007 26 0.5 17 0.5 0.18 2008 31 1 20 0.9 0.11 2009 33 1.5 23 1.2 0.12 2010 40 2 27 1.5 0.15 a. Calculate the annual returns for each stock (2006-2010) b. Calculate the average returns for each of the stocks and the market c. Calculate the covariance between the stocks d. Compute the portfolio return and portfolio risk if the Stock A and Stock B are combined equally in a portfolio.The current price of a non-dividend-paying stock is $30. Over the next six months it is expected to rise to $36 or fall to $26. Assume the risk-free rate is zero. What is the risk-neutral probability of that the stock price will be $36? Choose the right answer: a. 0.3 b. 0.4 c. 0.5 d. 0.6
- 1. A share of stock of company is now selling for 23.5 lei. A financial analyst summarizes the uncertainty about the rate of return on the stock by specifying three possible scenarios: Scenario Probability 0.35 End-of-year price 35 27 Annual dividend 4.4 II 0.3 4 15 Compute the expected return and risk on this security. III 0.35 4Suppose your expectations regarding the stock price are as follows: State of the Market Boom Normal growth Recession Probability Ending Price 0.21 $ 140 0.30 110 0.49 80 Use the equations E (r) = Ep (s) r(s) and o² = Ep (s) [r(s) - E(r)]² to compute the mean and standard deviation of the HPR on S S HPR (including dividends) 50.5% 18.0 -12.5 stocks. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Mean Standard deviation Answer is complete but not entirely correct. 13.65 % 20.48 %You have been following a stock for 6 months and the following is its past return Year 1: -5% Year 2: -10% Year 3: 15% Year 4: 5% Year 5: 10% Year 6: 15% What is the expected return and standard deviation of the stock based on the historical data? Assume normal distribution, what is VaR at 5% for this stock? What is the Sharpe ratio of the stock based on historical data, risk free rate is 1%?