Reference no: EM132175255
Business Finance
1. Six months ago, you purchased 1,200 shares of ABC stock for $21.30 a share. You have received dividend payments equal to $.60 a share. Today, you sold all of your shares for $22.70 a share. What is your total dollar return on this investment? What is your rate of return over this six-month holding period?
2. A stock had returns of 6%, -2%, 4%, and 16% over the past four years. What is the standard deviation of this stock for the past four years?
3. What are the arithmetic and geometric average returns for a stock with annual returns of 21%, 8%, -32%, 41%, and 5%?
4. What is the expected return on a portfolio which is invested 20% in stock A, 50% in stock B, and 30% in stock C? the expected returns on A, B and C are 25%, 20% and 8%.
5. The risk-free rate of return is 4% and the market risk premium is 8%. What is the expected rate of return on a stock with a beta of 1.8?
6. Your portfolio is comprised of 30% of stock X, 50% of stock Y, and 20% of stock Z. Stock X has a beta of .6, stock Y has a beta of 1.4, and stock Z has a beta of 1.2. What is the beta of your portfolio?