What is the rate of return will get from holding

Assignment Help Finance Basics
Reference no: EM132641713

-Suppose I bought a stock for $100 today. One year later, stock price became $70 and I received a $5 dividend. What is the rate of return will get from holding this stock for 1 year?

-There are two assets A and B. I invest 70% of my portfolio in A and 30% in B. Suppose A's expected return in 10% and B's expected return is 20%. What is the expected return of my portfolio?

-Assume the CAPM is true. Suppose risk free rate is 1%. Expected return of the market is 11% (so market risk premium is 10%). Stock A has a beta of -1. What is stock A's expected return?

-Suppose volatility of the stock market is 20%. suppose I always short stocks. What would be the volatility of the return of my strategy?

Reference no: EM132641713

Questions Cloud

What is mary effective annual rate : She sold all stocks today for $42.25. During that period the stock paid dividends of $2.81 per share. What is Mary's effective annual rate?
Duty to warn and protect : Your client has told you that he plans to kill someone. You figure out the identity of his intended victim, although he has not specifically told you.
Discuss about the potential risks to your community : After reviewing the information, choose one of the summaries, and discuss one or two key points that you are most concerned about as potential risks to your.
Explain the importance of epidemiology : Explain the importance of epidemiology for informing (1) scientific, (2) ethical, (3) economic, and (4) political discussion of health issues
What is the rate of return will get from holding : -Suppose I bought a stock for $100 today. One year later, stock price became $70 and I received a $5 dividend. What is the rate of return will get from holding
How many dollars will it need in two years : The two-year annualized interest rate in the United States is 5 percent, and the two-year annualized interest rate in Poland is 11 percent. If California Co.
What were the initial epidemiologic clues : Descriptive epidemiology involves examining the patterns, What were the initial epidemiologic clues that indicated that the outbreak may have been intentional?
Feature has constituted an obstacle to country political : In which respect does Iraq have very shallow roots as a nation? Explain how this feature has constituted an obstacle to the country's political
Describe the federal assistance strategies : If you or your home were to be impacted by a disaster, do you feel there is overlap or gaps in the federal assistance strategies and resources that would.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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