Question 1-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?Answer=?
Question 2-You have observed the following returns on ABC's stocks over the last five years:2.5%, 8.5%, 11.1%, 10.7%, 8.3%
What is the geometric average returns on the stock over this five-year period.
Answer=? 
Question 3 Suppose the nominal rate is 14.62% and the inflation rate is 5.49%. Solve for the real rate.Answer=? 
Question 4-Calculate the expected returns of your portfolio
Stock Invest Exp Ret
A $266 7.7%
B $857 13.9%
C $1,133 25.4%
Answer =? 
Question 5-You have observed the following returns on ABC's stocks over the last five years:
3.4%, 8.6%, -7.6%, 10.1%, -6.5%
What is the arithmetic average returns on the stock over this five-year period.
Answer=?
Question 6-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. Answer=?
Question 7-Suppose a stock had an initial price of $84.36 per share, paid a dividend of $5.1 per share during the year, and had an ending share price of $107.65. What are the percentage returns? Answer=? 
Question 8- A portfolio is invested 45.7% in Stock A, 24.8% in Stock B, and the remainder in Stock C. The expected returns are 17.1%, 31.9%, and 24.6% respectively. What is the portfolio's expected returns? Answer=? 
Question 9-You own a portfolio invested 11.08% in Stock A, 17.17% in Stock B, 17.61% in Stock C, and the remainder in Stock D. The beta of these four stocks are 1.11, 0.69, 0.61, and 0.82. What is the portfolio beta? Answer? 
Question 10-Suppose a stock had an initial price of $72.3 per share, paid a dividend of $6.6 per share during the year, and had an ending share price of $88.16. If you own 88 shares, what are the dollar returns? Answer-? 
Question 11-Suppose the real rate is 3.02% and the nominal rate is 13.89%. Solve for the inflation rate. Answer? 
Question 12-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. Answer? 
Question 13-Suppose a stock had an initial price of $70.2 per share, paid a dividend of $7.6 per share during the year, and had an ending share price of $109.5. What are the percentage returns?Answer=?
Question 14-Calculate the expected returns of your portfolio
Stock Invest Exp Ret
A $179 3.7%
B $617 16.7%
C $319 27.8%
Answer-? 
Question 15-You have observed the following returns on ABC's stocks over the last five years:2.1%, 8.6%, 6.6%, 12.5%, 3.6%
What is the arithmetic average returns on the stock over this five-year period. Answer=?
Question 16-Based on the following information, calculate the expected returns:
Prob Return
Recession 30% 36.4%
Boom 70% 9.8%
Answer =? 
Question 17-You own a portfolio invested 16.07% in Stock A, 15.88% in Stock B, 15.86% in Stock C, and the remainder in Stock D. The beta of these four stocks are 1.09, 1.02, 0.9, and 0.54. What is the portfolio beta Answer=? 1 points 
Question 18-Suppose the real rate is 2.05% and the inflation rate is 3.52%. Solve for the nominal rate. Answer=? 
Question 19-Suppose a stock had an initial price of $74.37 per share, paid a dividend of $5.2 per share during the year, and had an ending share price of $83.55. What are the dollar returns? Answer? 
Question 20- 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?
Answer= $6,000 $9,000 $12,000 $15,000 $18,000
Question 21-You own a portfolio that has $1,900 invested in Stock A and $2,700 invested in Stock B. If the expected returns on these stocks are 9 percent and 15 percent, respectively, what is the expected return on the portfolio?
Answer= 10.57 percent 11.14 percent 11.96 percent
12.52 percent 13.07 percent
Question 22-What is the beta of the following portfolio? 
Stock Value Beta 
S $32,800 0.97
T $16,700 1.26
U $21,100 0.79
V $4,600 1.48
Answer=
0.98 1.02 1.11 1.14 1.20
Question 23-You own a portfolio of two stocks, A and B. Stock A is valued at $6,540 and has an expected return of 11.2 percent. Stock B has an expected return of 8.1 percent. What is the expected return on the portfolio if the portfolio value is $9,500?
Answer= 9.58 percent 9.62 percent 9.74 percent 9.97 percent 10.23 percent

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