Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1) You bought 1,000 shares of stock for= $33 per share exactly 1 year ago. In the year, stock paid the $.50 dividend per share and present stock price is= $27 per share. Inflation rate last year was= 2%. Answer the following:

a) Compute actual return (also called percentage return) on your investment over last year.

b) Compute (i) dividend yield and (ii) percentage capital gain.

c) Compute real rate of return on stock.

2) You are interested in purchasing the stock which has a price of= $62. You have projected that next year there is= 10% probability stock will equal $10, a 20% probability the stock will equivalent $58, a 30% probability the stock will equivalent $63, a 30% probability stock will equal= $80, and a 10% probability stock will equal= $120. Reply the following:

a) Determine the expected return on stock if you purchase today and sell next year?

b) Compute the expected standard deviation of stock?

3) Determine 2 publicly traded stocks in various industries and look up estimates of their β.

a) By using Rf=1%, E(Rm) = 8%, compute the E(r) for each stock.

b) Describe in words a non-finance student could understand why 1 stock has higher expected return than other.

Requirements
Min Pages: 1
Max Pages: 2

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M915088

Have any Question? 


Related Questions in Basic Finance

1 describe the basic problem that threatens internal

1. Describe the basic problem that threatens internal validity for nonequivalent group designs. 2. Give an example of a between-subjects nonexperimental design and a between subjects quasi-experimental design. Explain wh ...

What exactly is a homemade dividend does this concept

What exactly is a homemade dividend? Does this concept lessen the importance of dividend policy?

What is an efficient market why do efficient markets

What is an efficient market? Why do efficient markets benefit society? Define arbitrage and the law of one price. What role do they play in our market system? What do we call the "one price" of an asset? Suppose you are ...

1 how do commercial banks obtain their funds what is

1. How do commercial banks obtain their funds? What is financial restructuring advising? The following is an excerpt from the 2009 Annual Report of Bank of America (p. 24): Through our banking and various nonbanking subs ...

In formulating key concept exercise consider the following

In formulating Key Concept Exercise, consider the following questions: What are the benefits of just-in-time (JIT) techniques? What types of organisations use JIT techniques? Should things change if they are running smoo ...

What is the accounting identity list at least three of the

What is the accounting identity? List at least three of the assumptions underlying financial statements? Identify at least three current asset accounts ? What is the operating cycle ? Identify three current liability acc ...

1 what is meant by a real option2 what is meant by the term

1. What is meant by a "real option"? 2. What is meant by the term overage for retail space? 3. How does the use of scenarios differ from sensitivity analysis?

Discussionmiddot determine a key difference between

Discussion · Determine a key difference between a fee-for-service plan and an episode of care payment plan, and indicate the plan that you believe to be most advantageous for the majority of patients. Provide support for ...

1 what is the difference between venture capital firms and

1. What is the difference between venture capital firms and private equity firms? What roles do they play in the financial system? 2. The author of a newspaper article providing advice to renters observes that "landlords ...

Anne has been researching investments and bought a stock

Anne has been researching investments and bought a stock today for $21 per share. Anne's research tells her that she will be able to sell the stock in 5 years for $61 per share. In this case, what interest rate, in perce ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro