Question

**1.** Using the data in the table to the right,
calculate the return for investing in the stock from January 1 to
December 31. Prices are after the dividend has been paid.

Date Price Dividend

1/2/03 $32.24 -

2/5/03 $30.91 $0.19

5/14/03 $30.98 $0.18

8/13/03 $32.83 $0.17

11/12/03 $39.42 $0.18

1/2/04 $40.14 -

What is the return for the entire period? (round to two decimal places)

**2.** Ten annual returns are listed in the
following table:

−19.6% |
16.8% |
18.2% |
−49.6% |
43.7% |
1.6% |
−16.2% |
46.1% |
44.7% |
−3.5% |

a. What is the arithmetic average return over the 10-year period?

b. What is the geometric average return over the 10-year period?

c. If you invested $100 at the beginning, how much would you have at the end?

Answer #1

EXCEL FORMULA:

urgentTTTT
Using the data in the table to the right, calculate the return
for investing in the stock from January 1 to December 31. Prices
are after the dividend has been paid. Date Price Dividend Jan 1 $
34.93 minus Feb 5 $ 31.39 $ 0.17 May 14 $ 30.57 $ 0.21 Aug 13 $
33.98 $ 0.21 Nov 12 $ 39.74 $ 0.19 Dec 31 $ 41.17 minus Return for
the entire period is nothing%. (Round to two decimal...

Using the data in the table to the right, calculate the return
for investing in the stock from January 1 to December 31. Prices
are after the dividend has been paid.
Date
Price
Dividend
Jan 1
$31.79
−
Feb 5
$32.58
$0.21
May 14
$28.99
$0.21
Aug 13
$32.19
$0.22
Nov 12
$37.35
$0.19
Dec 31
$42.82
−
The return for the entire period is ____ %.
(Round to two decimal places.)

1. Calculate the rates of return (holding period returns) for
the following stocks:
Stock
Beginning price: P0
Ending price: P1
Dividend payment: D1
A
21.38
16.06
2.6
B
108.74
118.92
5.25
C
4.25
5.58
0.19
Part 1
What was the rate of return for stock A?
Part 2
What was the rate of return for stock B?
Part 3
What was the rate of return for stock C?
2. You bought Samsung stock for $45 on April 1. The stock...

Use the following data for the next 2 questions: You purchased a
stock on 1/1/20X1 for $100. The following table gives the price of
the stock and the dividend paid for several years. Date Price
Dividend 1/1/20X2 110 2 1/1/20X3 105 3 1/1/20X4 130 4 11.
Date
Price
Dividend
1/1/20X2
110
2
1/1/20X3
105
3
1/1/20X4
130
4
What is the arithmetic average annual return over the three-year
period for the stock?
What is the geometric average annual return over...

Please answer all parts of Question 1 using the following
data:
Year
IBM’s yearly stock return
Yearly return on the S&P500
1999
17.02%
21.04%
2000
-21.21%
-9.10%
2001
13.09%
-1.89%
2002
16.22%
-22.10%
The riskless rate for this period is 3.5%, and the covariance
between returns on IBM stock and the S&P500 over this period is
0.02276.
1A. What is IBM’s arithmetic mean yearly return over this
period?
1B. What is IBM’s geometric mean yearly return over this
period?
1C....

you have been given the expected return data shown in the first
table on three
assetslong dash—F,
G, and
H long dash—over
the period 2016-2019:
Expected Return
Year
Asset F
Asset G
Asset H
2016
16%
17%
14%
2017
17%
16%
15%
2018
18%
15%
16%
2019
19%
14%
17%
Using these assets, you have isolated the three investment
alternatives shown in the following table
Alternative
Investment
1
100% of asset F
2
50% of asset F and 50% of...

Portfolio analysis???You have been given the
expected return data shown in the first table on three
assetslong dash—?F,?G, and H long dash—over the period?
2016-2019:
Expected Return
Year
Asset F
Asset G
Asset H
2016
15?%
16?%
???
13?%
???
2017
16?%
15?%
14?%
2018
17?%
14?%
15?%
2019
18?%
13?%
16?%
Using these? assets, you have isolated the three investment
alternatives shown in the following? table:
Alternative
Investment
1
?100% of asset F
2
?50% of asset F and?...

Portfolio analysis???You have been given the
expected return data shown in the first table on three
assetslong dash—?F, ?G, and H—over the period? 2016-2019:
Expected Return
Year
Asset F
Asset G
Asset H
2016
18%
19%
???
16%
???
2017
19?%
18%
17%
2018
20?%
17%
18?%
2019
21%
16%
19%
Using these? assets, you have isolated the three investment
alternatives shown in the following? table:
Alternative
Investment
1
?100% of asset F
2
?50% of asset F and? 50%...

You have been given the expected return data shown in the first
table on three assets—F, G, and H—over the period 2016-2019
Year
Asset F
Asset G
Asset H
2016
7
10
15
2017
6
8
16
2018
3
19
19
2019
11
9
11
Using these assets, you have isolated the three investment
alternatives shown in the following table.
Alternative
Investment
1
100% of asset F
2
75% of asset F and 25% of asset G
3
50% of...

3. Measuring stand-alone risk using realized
(historical) data
Returns earned over a given time period are called realized
returns. Historical data on realized returns is often used to
estimate future results. Analysts across companies use realized
stock returns to estimate the risk of a stock.
Consider the case of Blue Llama Mining Inc. (BLM):
Five years of realized returns for BLM are given in the
following table. Remember:
1.
While BLM was started 40 years ago, its common stock has...

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