Question: Please help with this finance practice questions. See attached file. 1. 1 From the price data below, compute the percentage holding period returns for periods

Please help with this finance practice questions. See attached file.

Please help with this finance practice questions. See attached file. 1. 1

1. 1 From the price data below, compute the percentage holding period returns for periods 2, 3 and 4. There were no cash payments during any of the periods. Period Stock Price Holding Period Return 1 $10 2 $13 ? 3 $11 ? 4 $15 ? From the holding period returns below, compute the average return and the standard deviation of returns. Holding Period Return Period 1 1 6% 2 3% 3 -1% 4 -3% 5 5% 6 0% Average Return ? Standard Deviation of Returns ? From the holding period returns below, compute the arithmetic average return and the geometric average return. Peri od Holding Period Return 1 4% 2 2% 3 1% 4 -2% 5 2% 6 2% Arithmetic Average Return ? Geometric Average Return ? 1 From the average returns below, compute the market risk premium for Small Cap Stocks. Asse t 1 Average Return Large Cap Stocks 11.8% Small Cap Stocks 16.5% Long-Term Corporate Bonds 6.4% Intermediate-Term Government Bonds 5.5% U.S. Treasury Bills 3.8% Risk Premium ? From the year-end prices and dividends below, compute the arithmetic and geometric average returns for the stock. Hint: compute the holding period returns first (there will only be 5 holding period returns). Period Stock Price Dividen d 1 $43.15 2 48.13 $.45 3 57.05 .49 4 45.13 .55 5 52.05 .62 6 61.13 .68 Holding Period Return Arithmetic Average ? Geometric Average

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!