### Problem 1calculating returnsnbsp suppose a stock had an

Assignment Help Corporate Finance
##### Reference no: EM13380751

Problem #1

Calculating Returns.  Suppose a stock had an initial price of \$83 per share, paid a dividend of \$1.40 per share during the year, and had an ending share price of \$71. Compute the percentage total return.

What was the dividend yield?

The capital gains yield?

Problem #2

Calculating Returns.  Suppose you bought a 7 percent coupon bond one year ago for \$893.  The bond sells for \$918 today.

a. Assuming a \$1,000 face value, what was your total dollar return on this investment over the past year?

b. What was your total nominal rate of return on this investment over the past year?

c. If the inflation rate last year was 4 percent, what was your total real rate of return on this investment?

Problem #3

Portfolio Expected Return.  You own a portfolio that has \$1,500 invested in Stock A and \$2,600 invested in Stock B.  If the expected returns on these stocks are 10 percent and 16 percent, respectively, what is expected return on the portfolio?

Problem #4

Calculating Expected Return.  Based on the following information, calculate the expected return.

Stare of Economy      Probability of State of Economy         Rate of Return if State Occurs

Recession                                        .25                                                  -.09

Normal                                            .45                                                   .11

Boom                                              .30                                                   .30

Problem #5

Returns and Standard Deviations.  Consider the following information:

State of         Probability of                                 Rate of Return if Occurs

Economy      State of Economy                 Stock A          Stock B          Stock C

Boom                     .15                                    .35                 .45                  .33

Good                      .45                                    .12                 .10                   .17

Poor                        .35                                    .01                 .02                  -.05

Bust                        .05                                  -.11                 -.25                 -.09

1. Your portfolio is invested 30 percent each in A and C and 40 percent in B.  What is the expected return of the portfolio?
2. What is the variance of this portfolio?          The standard deviation?

#### Questions Cloud

 The company has collected data concerning weekly fuel : the company has collected data concerning weekly fuel consumptiony average hourly temperaturex1 and the chill indexx2. Beginning with your code add a jmenubar to your main window : beginning with your code add a jmenubar to your main window with a game menu which contains 5 jradiobuttonmenuitems as Relationship to learning outcomes critically analyse the : relationship to learning outcomes critically analyse the theory concepts and models of operations and information Problem 1portfolio expected returnnbsp you own a portfolio : problem 1portfolio expected return.nbsp you own a portfolio that has 1500 invested in stock a and 2600 invested in Problem 1calculating returnsnbsp suppose a stock had an : problem 1calculating returns.nbsp suppose a stock had an initial price of 83 per share paid a dividend of 1.40 per A united states company x has contracted to provide a : a united states company x has contracted to provide a service to a european company z european company uses the euro 1 one of your newer clients is the senior lending officer : 1 one of your newer clients is the senior lending officer of a local bank. he is new to his position and does not have You have two financing choices lease or borrowamp buy you : you have two financing choices lease or borrowamp buy. you can obtain a four-year loan at 6 annual rate which means 0.5 The bravo company just paid an annual dividend of 400 per : the bravo company just paid an annual dividend of 4.00 per share. due to a need to conserve cash the dividend in one

### Write a Review

#### Calculate beta for new portfolio

Suppose you hold a diversified portfolio consisting of a dollar 10,000 investment in each of 15 different common stocks. The portfolio beta is = 0.9. Calculate beta for new portfolio.

#### What does your calculated beta mean to upc

What must the average beta of the new stocks added to the portfolio be to achieve the desired required rate of return? Attach your Excel file showing your calculations.

#### What is the daily labor expense for part-time employees

Develop a minimum cost schedule for the part-time employees and what is the daily labor expense for part-time employees?

#### 1ulating npvnbsp for the cash flows in the

1. calculating npv.nbsp for the cash flows in the previous problem suppose the firm uses the npv decision

#### The following is the balance sheet of mr raghu as on mar

the following is the balance sheet of mr. raghu as on mar 31

#### Computing the monthly interest rate

You are taking out a 100,000 mortgage loan to be repaid over 25 years in 300 monthly payments

#### Compute the present value

For each of the following, compute the present value. Round your answers to 2 decimal places.

#### Describe the characteristics of restlifes portfolio

Describe the characteristics of RestLife's portfolio, including the portfolio's exposures - Describe in details the pros/cons associated with alternative ways through which RestLife can gain the desired exposure

#### How much should the investor deposit annually

How much should the investor deposit annually in his account beginning on his 35th birthday and ending on his 64th birthday to finance his retirement?

#### Brau auto a national autoparts chain is considering

brau auto a national autoparts chain is considering purchasing a smaller chain south georgia parts sgp. braus analysts

#### Possible reasons for inaccurate financial reporting

What are the possible reasons for inaccurate financial reporting? Do you feel this is deliberate and discuss the impact of major accounting scandals on investors' asset preferences.

#### Provide all calculations necessary to support your

provide all calculations necessary to support your answerson january 8. 2010 the first day of your new company you