Geometric average return over this five-year period

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Reference no: EM131995477

1. Stock D has a beta value of 3.4. It pays annual dividends, of $90, starting one year from today. If the risk-free return is currently .5%, and the equity risk premium is 6%, what is the present value of the stock?

a. 18,000

b. 441.17

c. 1,384.6

d. 430.6

e. 354.3

2. An investment portfolio has annual returns of 2%, 20%, -8%, -10%, and -1% over a five-year period. What is the geometric average return over this five-year period?

a. -.5%

b. 1.34%

c. .6%

d. 6%

e. 0%

Reference no: EM131995477

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