Question: please help with the homework problems! 1. You bought 100 shares of stock ar 20 each At the end of the year, you received a



1. You bought 100 shares of stock ar 20 each At the end of the year, you received a total of $400 in dividends, and your stock was worth $2,300 total. What was your total percentage return? A) 20% B) 45% OC) 50% OD) 90% OE) 10% Question 2 (3.5 points) Saved Listen 2. Systemic risk does not include: O A) COVID OB) Inflation OC) GDP growth rate OD) Government Debt Burden E) All of the above are systemic risk Question 3 (3.5 points) Listen 3. The "total" risk of a stock held in isolation is measured in finance by: A) diversifiable risk B) beta C) expected return D) the standard deviation (or variance) E) the market risk permum 4. If the expected return to the market portfolio is 12%, the risk-free rate is 4%, then what is the market risk premium? A) 8% B) 12% OC) 16% D]1% OE) 4% Question 5 (3.5 points) Laten 5. A stock with a bea of one would be expected to have a rate of retium equal to AJUS T-Bill rate B) the IBM bond rate O the S&P 500 rate OD) the average Corporate AAA bond rate E) the average Municipal AAA bond rate) Question 6 (3.5 points) Listen 6. What is the portfolio beta if 10% of your money is invested in Stock A with a bets of 2.3.30% of your money invested in Stocks with a bets of 0.7 and 50% of your money is invested in Stock with a bets of 1.67 OA) 1.47 B) 153 OC) 1.6 OD) 4.6 E 3.0 420 39 7. Warren Buffett expects a 6% return on Goldman Sack's preferred stock, and the dividend is expected to be $1.30 every quarter, what is the fair price for this preferred stock per share? OA) 543.333 OB) $21.667 OC) $86,667 OD) $1.245 O E) $1.30 Question 8 (3.5 points) Listen 8. Consider the stock of Davidson Company, whose next dividend will be $2. The dividends will grow at a constant annual rate of 5%, forever. The require return is 12% on the company's stock, what is its price? O A $30 OB) $46.54 OC) $28.57 D) $10 O E) $2 Question 9 (3.5 points) 9. Which of the following mesi O A Dividends are not a liability of the firm until they are declared, B) Most preferred dividends are cumulative. O Preferred stock does not generally carry voting rights. Dj Coupons are not a liability of the firm, The US equity markets have been found to be semi-strong efficient. O 420 39 10. Portfolio diversification reduce risk because of the between asset A) variance B) risk premium correlation Orisk-free rate O capital gains yield Question 11 (3.5 points) Listen 11. If the coupon rate is 6%, the YTM is 7.4% then what would be the semi-annual coupon? OA) 560 B) $37 Og $14 OD) $74 E) $30 Question 12 (3.5 points) 4 Listen 12. A bond pays a coupon of $120. If the yield to maturity is 13%, then the bond will If the yield to maturity is 11%, then the bond will sell at a Aldiscount; discount B) premium premium C) discount, premium Dl premium, discount E par value premium 420 AR 6
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