In Problem 1, what was the dividend yield? The capital gains yield?
Answer to relevant QuestionsUsing the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X andY.Over a 40-year period an asset had an arithmetic return of 11.7 percent and a geometric return of 9.6 percent. Using Blume’s formula, what is your best estimate of the future annual returns over 5 years? 10 years? 20 years?A portfolio is invested 15 percent in Stock G, 55 percent in Stock J, and 30 percent in Stock K. The expected returns on these stocks are 8 percent, 14 percent, and 18 percent, respectively. What is the portfolio’s ...Asset W has an expected return of 12.8 percent and a beta of 1.25. If the risk-free rate is 4.1 percent, complete the following table for portfolios of Asset W and a risk-free asset. Illustrate the relationship between ...Stock in Dragula Industries has a beta of 1.1. The market risk premium is 7 percent, and T-bills are currently yielding 4.5 percent. The company’s most recent dividend was $1.70 per share, and dividends are expected to ...
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