1. Jill purchased a share for $6.23 one year ago. The share is now worth $13.08. During the year, the share paid a dividend of $1.74. What is the total return to Jill from owning the share? (as a percentage to the nearest two decimal points; don't use % sign. eg 2.881% is 2.88.)
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3. Grant may get a bonus next year of $150,000 if he achieves the greatest number of house sales in his employer's real estate business. If he comes second he will only get a bonus of $50,000 and if he doesn't come in the top two, he gets nothing. There is a 40% chance Grant gets first place, a 40% chance he gets second and a 20% chance he ranks below second place. What is the standard deviation of the bonus? (Round to the nearest dollar).
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5. You think that your chance of getting a well-paid job in an investment bank is about 28 per cent. If you get the job you will have a starting salary of $72,000 per year. However, if you don't make the cut then you will work at a fast food outlet for $40,000 per year. What is your expected starting salary? (to the nearest dollar)
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7. Jill purchased a piece of real estate one year ago for $620,000. The real estate is now worth $670,000. If Jill needs to have a total return of 11.8 per cent during the year, then what is the dollar amount of income that she needed to have to reach her objective? (to the nearest dollar; don't use $ sign or commas)
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9. Jack purchased a share one year ago for $8.87, and it is now worth $12.40. The share paid a dividend of $1.98 during the year. What was the share's income rate of return during the year? (as a percentage to the nearest two decimal points. don't use % sign. eg 2.881% is 2.88)
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11. In a game of chance, the probability of winning a $50 prize is 30 per cent, and the probability of winning a $100 prize is 70 per cent. What is the expected value of a prize in the game?
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13. In the next year, you expect Westpac shares have a 20% chance of earning 10 percent return, a 50% chance of earning only 2 percent and a 30% chance of earning -10 percent. Based on this, what is the standard deviation of Westpac's expected return?

Answer rating: 100% (QA)

1 To calculate the total return we need to take into account both the capital gain or loss and the income received from the investment Total return Ending value Beginning value Income Beginning value ... View the full answer