2024 – 24 Calculate the expected returns of your portfolio 23 Suppose the returns

24
Calculate the expected returns of your portfolio

23
Suppose the returns for Stock A for last six years was 4%, 7%, 8%, -2%, 9%, and 7%.
Compute the standard deviation of the returns.

22
Suppose a stock had an initial price of $69.87 per share, paid a dividend of $7.9 per share during the year, and had an ending share price of $96.03. What are the percentage returns if you own 25 shares?

21
Suppose a stock had an initial price of $62.28 per share, paid a dividend of $4.2 per share during the year, and had an ending share price of $87.27. What are the dollar returns?

20
You have observed the following returns on ABC’s stocks over the last five years:
3.9%, 8.7%, -12.8%, 13.9%, -2.7%
What is the arithmetic average returns on the stock over this five-year period

19
You have observed the following returns on ABC’s stocks over the last five years:
4.9%, 8.1%, -13%, 11.2%, -8.6%
What is the geometric average returns on the stock over this five-year period.

18
You have observed the following returns on ABC’s stocks over the last five years:
4.9%, 8.8%, 7.4%, 11.8%, 7.3%
What is the geometric average returns on the stock over this five-year period

17
Suppose a stock had an initial price of $68.64 per share, paid a dividend of $8.2 per share during the year, and had an ending share price of $88.89. What are the percentage returns?

16
Calculate the expected returns of your portfolio

15
You own a portfolio invested 10.01% in Stock A, 12.65% in Stock B, 13.78% in Stock C, and the remainder in Stock D. The beta of these four stocks are 1.14, 1.15, 0.99, and 0.73. What is the portfolio beta?

14
Suppose a stock had an initial price of $67.75 per share, paid a dividend of $4.8 per share during the year, and had an ending share price of $109.16. If you own 51 shares, what are the dollar returns?

13
Suppose a stock had an initial price of $72.61 per share, paid a dividend of $3 per share during the year, and had an ending share price of $109.86. What are the percentage returns?

12
You have observed the following returns on ABC’s stocks over the last five years:
4.9%, 8.7%, 3.7%, 10.7%, 6%
What is the arithmetic average returns on the stock over this five-year period.

11
Based on the following information, calculate the expected returns:

10
You own a portfolio invested 12.55% in Stock A, 12.07% in Stock B, 13.37% in Stock C, and the remainder in Stock D. The beta of these four stocks are 1.25, 1.04, 0.86, and 1.23. What is the portfolio beta?

9
A $36,000 portfolio is invested in a risk-free security and two stocks. The beta of stock A is 1.29 while the beta of stock B is 0.90. One-half of the portfolio is invested in the risk-free security. How much is invested in stock A if the beta of the portfolio is 0.58?

7
What is the beta of the following portfolio?

       

Stock Investment Beta Weighted Beta    

J 21600 1.48 0.31840637    

K 13000 1.13 0.14631474    

L 46000 0.88 0.40318725    

M 19800 1.08 0.21298805    

5
What is the beta of the following portfolio?

       

Stock Investment Beta Weighted Beta    

S 32800 0.97 0.42308511    

T 16700 1.26 0.27981383    

U 21100 0.79 0.22166223    

V 4600 1.48 0.09053191    

4
The systematic risk is same as:

       

       

unique risk       

Diversifiable risk      

Asset-specific risk      

Market risk      

Unsystematic risk      

3
Standard deviation measures _____ risk while beta measures _____ risk.

       

systematic; unsystematic      

unsystematic; systematic      

total; unsystemaatic      

total; systematic      

asset-specific; market      

 

 

2
Suppose the nominal rate is 9.85% and the inflation rate is 3.79%. Solve for the real rate. Use the Fisher Effect formula

       

1
A portfolio is invested 20.5% in Stock A, 22% in Stock B, and the remainder in Stock C. The expected returns are 18.2%, 35%, and 24.5% respectively. What is the portfolio’s expected returns?