Expert Answers

You purchased 260 shares of a particular stock at the beginning of the year at a price of $75.23. The stock paid a dividend of $0.90 per share, and the stock price at the end of the year was $81.74.

What was your dollar return on this investment? (Do not include the dollar sign ($). Round your answer to 2 decimal places (e.g., 32.16).)
Suppose a stock had an initial price of $85 per share, paid a dividend of $1.50 per share during the year, and had an ending share price of $99.

Compute the percentage total return. (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).)

What was the dividend yield? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).)

What was the capital gains yield? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).)
Using the following returns for X and Y.

Year Return
X Y
1 21.40% 25.20%
2 -16.40% -3.40%
3 9.40% 27.20%
4 18.80% -13.80%
5 4.40% 31.20%
Calculate the average returns for X and Y. (Do not include the percent signs (%). Round your answers to 2 decimal places (e.g., 32.16).)
Calculate the variances for X and Y. (Round your answers to 6 decimal places (e.g., 32.161616).)
Calculate the standard deviations for X and Y. (Do not include the percent signs (%). Round your answers to 2 decimal places (e.g., 32.16).)
“A stock has had returns of ?18.1 percent, 28.1 percent, 13.2 percent, ?9.2 percent, 33.9 percent, and 26.1 percent over the last six years.
Required:
What are the arithmetic and geometric returns for the stock? (Do not include the percent signs (%). Round your answers to 2 decimal places (e.g., 32.16).)”
“Consider the following information on large-company stocks for a period of years.
Series

Arithmetic Mean

Large-company stocks 14.7 %
Small-company stocks 16.4
Long-term corporate bonds 6.2
Long-term government bonds 6.1
Intermediate-term government bonds 5.6
U.S. Treasury bills 3.8
Inflation 4.6 ”
What was the arithmetic average annual return in nominal terms? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).)
What was the arithmetic average annual return in real terms? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).)