1. If you purchased a stock one year ago for $25.00 per share and today it...

 

Transcribed Image Text:

1. If you purchased a stock one year ago for $25.00 per share and today it sells for $29.00 per share and pays a dividend of $1.00, what is your percentage return on the investment? What is the capital gains return and dividend yield? 2. Crash-n-Burn Computer's stock has generated returns of 7%, -12%, 11%, 38%, and 14% over the last 5 years. What is the average arithmetic return over that time? What is the standard deviation of these returns (hint: use the sample deviation sx)? 3. You own a portfolio that is 60% invested in Stock X, 25% invested in Stock Y, and 15% invested in Stock Z. The expected returns on these stocks are 9%, 17%, and 13% respectively. What is the expected return on the portfolio? 1. If you purchased a stock one year ago for $25.00 per share and today it sells for $29.00 per share and pays a dividend of $1.00, what is your percentage return on the investment? What is the capital gains return and dividend yield? 2. Crash-n-Burn Computer's stock has generated returns of 7%, -12%, 11%, 38%, and 14% over the last 5 years. What is the average arithmetic return over that time? What is the standard deviation of these returns (hint: use the sample deviation sx)? 3. You own a portfolio that is 60% invested in Stock X, 25% invested in Stock Y, and 15% invested in Stock Z. The expected returns on these stocks are 9%, 17%, and 13% respectively. What is the expected return on the portfolio?

Answer rating: 100% (QA)

1 To calculate the percentage return on the investment we need to consider both the capital gains return and the dividend yield Capital gains return The capital gains return is the increase in the sto... View the full answer