Reference no: EM132828372

1. Suppose a stock had an initial price of $79 per share, paid a dividend of $1.20 per share during the year, and had an ending share price of $94. Compute the percentage total return.

2. Suppose you bought a bond with an annual coupon of 10 percent one year ago for $1,160. The bond sells for $1,230 today. Assuming a $1,000 face value, what was your total dollar return on this investment over the past year?

What was your total nominal rate of return on this investment over the past year?

If the inflation rate last year was 7 percent, what was your total real rate of return on this investment?

3.Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y.
Returns
Year X Y
1 12 % 24 %
2 30 45
3 19 -7
4 -20 -21
5 21 53

4. Calculate the arithmetic average A stock had returns of 12 percent, 18 percent, 16 percent, 14 percent, 16 percent, and 8 percent over the last six years. What is the arithmetic return for the stock?
What is the geometric return for the stock?

5.Assume that last year T-bills returned 2.8 percent while your investment in large-company stocks earned an average of 7.6 percent. Which one of the following terms refers to the difference between these two rates of return?