You purchased 260 shares of a particular stock at the beginning of the year at a price of $75.23. The stock paid a dividend of $0.90 per share, and the stock price at the end of the year was $81.74.

Required:
What was your dollar return on this investment? (Do not include the dollar sign ($). Round your answer to 2 decimal places (e.g., 32.16).)
Dollar return $

Suppose a stock had an initial price of $85 per share, paid a dividend of $1.50 per share during the year, and had an ending share price of $99.

Requirement 1:
Compute the percentage total return. (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).)

Percentage total return %
Requirement 2:
What was the dividend yield? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).)

Dividend yield %
Requirement 3:
What was the capital gains yield? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).)

Capital gains yield
%

Using the following returns for X and Y.

Returns
Year X Y
1

21.4 %


25.2 %
2
– 16.4


– 3.4

3

9.4



27.2

4

18.8


– 13.8

5

4.4



31.2


Requirement 1:
Calculate the average returns for X and Y. (Do not include the percent signs (%). Round your answers to 2 decimal places (e.g., 32.16).)

Average returns
X %
Y %

Requirement 2:
Calculate the variances for X and Y. (Round your answers to 6 decimal places (e.g., 32.161616).)
Variances
X
Y

Requirement 3:
Calculate the standard deviations for X and Y. (Do not include the percent signs (%). Round your answers to 2 decimal places (e.g., 32.16).)

Standard deviations
X %
Y %
A stock has had returns of ?18.1 percent, 28.1 percent, 13.2 percent, ?9.2 percent, 33.9 percent, and 26.1 percent over the last six years.

Required:
What are the arithmetic and geometric returns for the stock? (Do not include the percent signs (%). Round your answers to 2 decimal places (e.g., 32.16).)

Arithmetic average return %
Geometric average return
%

Consider the following information on large-company stocks for a period of years.
Series

Arithmetic Mean

Large-company stocks 14.7 %
Small-company stocks 16.4
Long-term corporate bonds 6.2
Long-term government bonds 6.1
Intermediate-term government bonds 5.6
U.S. Treasury bills 3.8
Inflation 4.6

Required:
(a) What was the arithmetic average annual return in nominal terms? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).)

Nominal return %
(b) What was the arithmetic average annual return in real terms? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).)

Real return %

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    Finance Problems Solution - Dollar Return
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