What is the dollar amount of dividends

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1. Lee purchased a stock one year ago for $24. The stock is now worth $34, and the total return to Lee for owning the stock was 0.38. What is the dollar amount of dividends that he received for owning the stock during the year?

2. The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $20,000 per year forever. If the required return on this investment is 5.30 percent, how much will you pay for the policy? (Round your answer to 2 decimal places. (e.g., 32.16))

3. What is the VaR of a portfolio with normally distributed returns at the 5% VaR? Assume the expected return is 13% and the standard deviation is 20%.

Reference no: EM131997955

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