FIN - Multiple Problems

Question 8 
The systematic risk is same as:

Unique risk

Diversifiable risk

Asset-specific risk

Market risk

Unsystematic risk

Question 10 
Suppose the nominal rate is 13.3% and the inflation rate is 3.08%. Solve for the real rate.
Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.
Question 11 
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? 
Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 12.345% then enter as 12.35 in the answer box.
Question 12 
Suppose a stock had an initial price of $69.76 per share, paid a dividend of $8 per share during the year, and had an ending share price of $100.02. What are the percentage returns? 
Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.
Question 13 
You have observed the following returns on ABC's stocks over the last five years: 
2.1%, 9.6%, 9.5%, 13.9%, 8.6%
What is the geometric average returns on the stock over this five-year period.
Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

Question 14 
Suppose the real rate is 4.34% and the inflation rate is 5.31%. Solve for the nominal rate.
Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.
Question 15 
Suppose a stock had an initial price of $76.77 per share, paid a dividend of $9.6 per share during the year, and had an ending share price of $101.8. What are the percentage returns if you own 25 shares? 
Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

Question 16 
Calculate the expected returns of your portfolio

Stock Invest Exp Ret
A $490 3.1%
B $960 13%
C $262 24.6%

Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 12.345% then enter as 12.35 in the answer box.
Question 17 
You have observed the following returns on ABC's stocks over the last five years: 
2.2%, 8.9%, 3.4%, 11.8%, 5.7%
What is the arithmetic average returns on the stock over this five-year period.
Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.



Question 18 
Calculate the expected returns of your portfolio

Stock Invest Exp Ret
A $349 8%
B $856 19.6%
C $1,367 27.8%

Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 12.345% then enter as 12.35 in the answer box.

Question 19 
You have observed the following returns on ABC's stocks over the last five years: 
3.6%, 9.1%, -10.1%, 13%, -7.6%
What is the arithmetic average returns on the stock over this five-year period.
Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

Question 20 
Suppose a stock had an initial price of $70.89 per share, paid a dividend of $9.6 per share during the year, and had an ending share price of $91.09. If you own 339 shares, what are the dollar returns?
Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

Question 21 
Suppose the real rate is 4.82% and the nominal rate is 12.74%. Solve for the inflation rate.
Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

Question 22 
Suppose a stock had an initial price of $93.2 per share, paid a dividend of $5.6 per share during the year, and had an ending share price of $106.03. What are the dollar returns?
Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

Question 23 
Based on the following information, calculate the expected returns:

Prob Return
Recession 30% 26.9%
Boom 70% 3.8%

Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 12.345% then enter as 12.35 in the answer box.
Question 24 
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?
Note: Enter your answer rounded off to two decimal points. For example, if your answer is 12.345 then enter as 12.35 in the answer box.
Question 25 
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.
Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.



Question 26 
Suppose a stock had an initial price of $81 per share, paid a dividend of $4.1 per share during the year, and had an ending share price of $100.57. What are the percentage returns? 
Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

Question 27 
You own a portfolio invested 10.68% in Stock A, 17.67% in Stock B, 25.93% in Stock C, and the remainder in Stock D. The beta of these four stocks are 0.51, 1.29, 0.55, and 1.05. What is the portfolio beta?
Note: Enter your answer rounded off to two decimal points. For example, if your answer is 12.345 then enter as 12.35 in the answer box.

Question 28 
You have observed the following returns on ABC's stocks over the last five years: 
4.1%, 9.9%, -6.7%, 10.3%, -2.5%
What is the geometric average returns on the stock over this five-year period.
Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box