True concerning market performance

Assignment Help Financial Management
Reference no: EM131503186

Which one of the following statements is true concerning market performance from 1926 - 2015?

1) Over the short-term, small-company stocks are less volatile than large-company stocks.

2) U.S. Treasury bills tend to pay a higher rate of return than do long-term government bonds.

3) U.S. Treasury bills do not pay sufficient return to cover inflation.

4) Over the long-term, large-company stocks outperform small-company stocks.

5) U.S. Treasury bills have paid returns in excess of 10% in some years.

2. George purchased a stock one year ago at a price of $35.09. Over the past year he has received a total of $2.13 in dividends. Today he sold the stock for $33.85 What percentage total return did Marti earn on this investment?

1) 1.89%

2) 2.23%

3) 2.54%

4) 1.90%

5) – 2.72%

Reference no: EM131503186

Questions Cloud

Investments has provided the smallest average return : Over the past 70 years, which of the following investments has provided the smallest average return?
Describe the website and state why you selected this : Create a matrix for this organization based on the information available and any other supporting documentation you can find on this organization.
The market return on the us treasury bill is generally : The market return on the U.S. Treasury bill is generally used as the measure of the:
What is the efficiency of the given tdma system : A TDMA system uses a 48.6 Kbps transmission data rate to support 6 users. What is the efficiency of this TDMA system?
True concerning market performance : Which one of the following statements is true concerning market performance from 1926 - 2015?
Relationship between interest rate parity and forward rates : Interest Rate Parity. Define interest rate parity. What is the relationship between interest rate parity and forward rates
What would be market value of the bond : What would be the market value of the bond now that interest rates have fallen
Growth rate in dividends-what is the current share price : The growth rate in dividends is expected to be a constant 4 percent per year indefinitely. What is the current share price?
What are the disadvantages of leveraging with debt : What are the disadvantages of leveraging with operating liabilities? What are the disadvantages of leveraging with debt?

Reviews

Write a Review

Financial Management Questions & Answers

  About the potential sponsors should she contemplate

What questions about her firm and about the potential sponsors should she contemplate?

  What is the amount of each monthly mortgage payment

Donaldson's purchased some property for $1.2 million, paid 25 percent down in cash, and financed the balance for 12 years at 7.2 percent, compounded monthly. What is the amount of each monthly mortgage payment?

  Npv profile of two projects and calculate crossover rate

Show the NPV profile of the two projects and calculate the crossover rate. Which method gives you the correct answer, NPV or IRR or both? Explain.

  Compute the realized rate of return for investors

Seven years ago, Goodwynn & Wolf Incorporated sold a 20 year old bond issue with a 14% annual coupon rate and a 9% call premium. Today, G&W called the bonds. The bonds originally were sold at their face value of $1,000. Compute the realized rate of r..

  End-of-the-year after-tax cash inflows

he project will produce the following end-of-the-year after-tax cash inflows of

  What should be the current market price per share

Kennebunk Manufacturing is expected to pay a dividend of $8 per share next year. The dividend growth rate is expected to continue to be 3%. Required rate of return is 7%. What should be the current market price per share?

  Considering investing in project with the cash flows

Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 9 percent, and that the maximum allowable payback and discounted payback statistic for the pro..

  What is its coefficient of variation

Stock X has an expected return of 0.08. It has a beta estimated at 1, a risk-free rate of 0.03 and a risk premium of 6.4. Its variance of returns is 0.0029. All returns here are expressed as decimals, not percentages. What is its coefficient of varia..

  What was the amount of the deposit at the end of year five

What was the amount of the deposit at the end of year 5?

  How incorporating will affect the richards familys ability

Explain how incorporating will affect the Richards family's ability to transfer ownership to their children. Justify Jake's concerns with hiring professional management.

  Comparable single-family residence for cash equivalency

Calculate the adjusted sale price of a comparable single-family residence for cash equivalency.

  Owner of convertible mortgage note receivable

If a am the owner of a convertible mortgage note receivable, with interest of 8%, if mortgage interest rates in the market drop to 4.86%, what is the change in price? The FV is $70 million. The NOI is $6.8m. Is there any way to calculate the change w..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd