Compute percentage total return

Assignment Help Financial Management

Reference no: EM132062760

1. Magdolin's portfolio has an expected return of 17% and a beta of 1.3. Mehakpreet's portfolio has an expected rate of return of 12% and a beta of 0.9. The risk-free rate is 3% and the expected rate of return on the market is 12%. According to the Jensen's measure,

A) Magdolin has the better portfolio.

B) Mehakpreet has the better portfolio.

C) the portfolios are equally desirable.

D) the answer depends on Magdolin 's and Mehakpreet 's risk tolerance.

2. Suppose a stock had an initial price of $71 per share, paid a dividend of $1.1 per share during the year, and had an ending share price of $83. Compute the percentage total return.

A. 18.45

B. 15.78

C. 23.66

D. 19.37

Reference no: EM132062760

Questions Cloud

What do you mean by performance liquidated damages : What do you mean by performance liquidated damages? And what are the different ways used in the industry to calculate the damages,

Risk management strategies for the wheat trading : What are the risk management strategies for the wheat trading?

Determine the investment worth at the end of year : You have just purchased an investment that generates the cash flows shown below for the next four years. You are able reinvest these cash flows at 6.98 percent.

Find the value of current market price : You are purchasing a 10-year, zero-coupon bond. The yield to maturity is 8.68 percent and the face value is $1,000. What is the current market price?

Compute percentage total return : Suppose a stock had an initial price of $71 per share, paid a dividend of $1.1 per share during the year, Compute the percentage total return.

Savings account each month to be able to pay the bill : How much would you have to deposit in the savings account each month to be able to pay the bill?

Conflicting rankings between NPV-IRR and PI : Which of the following will lead to conflicting rankings between NPV, IRR and PI?

Your client once he starts to withdraw the money : how many months will it last your client once he starts to withdraw the money?

Affect the cost of capital of infrastructure project : Which one of the following factors would not affect the cost of capital of an infrastructure project?

User Account

All Pages