Reference no: EM132722184
Question 1) Suppose you become a shareholder of a company when you buy 500 shares at $75 per share. If the dividend distributed over the next year is $2.76 per share, what is your percentage gain if you decide to sell all 500 shares after one year at $91 per share?
Question 2) Suppose a mutual fund results in the following 5-year return values: 1.48% (2016), 10.59% (2017), 15.68% (2018), -7.68% (2019), and 23.22% (2020). Based on these values, calculate the geometric average return.
Question 3) Assume a mutual fund has returns of 1.48% (2016), 10.59% (2017), 15.68% (2018), -7.68% (2019), and 23.22% (2020). What would the variance be for this particular investment situation?
Question 4) Let's assume a risk-free rate of 2.7% on a ten-year Treasury bond in the United States. If there is an 8.3% expected rate of return from the overall market, and Toyota Company has a beta of 1.35, what is the required rate of return using the CAPM formula? Round to one decimal place.