Exam 10: Risk and Return: Lessons From Market History

You bought 100 shares of stock at $20 each. At the end of the year,you received a total of $400 in dividends,and your stock was worth $2,500 total. What was your total return?

Which country has the lowest stock market risk premium?

The average annual return on long-term corporate bonds for the period of 1926 to 2011 was ________%.

A stock had returns of 7%,9%,-3%,and 5% over the past four years. What is the standard deviation of this stock for the past four years?

The market portfolio of common stocks earned 14.7% in one year. Treasury bills earned 5.7%. What was the real risk premium on equities?

Six months ago,you purchased 100 shares of stock in ABC Co. at a price of $43.26 a share. ABC stock pays a quarterly dividend of $.10 a share. Today,you sold all of your shares for $46.71 per share. What is the total amount of your capital gains on this investment?

One year ago,you purchased a stock at a price of $32.50. The stock pays quarterly dividends of $.40 per share. Today,the stock is worth $34.60 per share. What is the total amount of your dividend income to date from this investment?

Over the period of 1926 through 2011,the annual rate of return on _____ has been more volatile than the annual rate of return on _____.

A symmetric,bell-shaped frequency distribution that is completely defined by its mean and standard deviation is the _____ distribution.

You bought 100 shares of stock at $20 each. At the end of the year,you received a total of $400 in dividends,and your stock was worth $2,500 total. What was your total dollar capital gain and total dollar return?

Over the period of 1926 to 2011,the average rate of inflation was _____%.

The average squared difference between the actual return and the average return is called the:

A stock had the following prices and dividends. What is the geometric average return on this stock?

How much of total world stock market capitalization is from the United States in 2011?

Little John Industries sold for $1.90 on January 1 and ended the year at a price of $2.50. In addition,the stock paid dividends of $0.20 per share. Calculate Little John's dividend yield,capital gains yield,and total rate of return for the year.

The standard deviation for a set of stock returns can be calculated as the:

Kids Toy Co. has had total returns over the past five years of 0%,7%,-2%,10%,and 12%. What was the arithmetic average return on this stock?

Which of the following statements concerning the standard deviation are correct? I. The greater the standard deviation,the lower the risk. II. The standard deviation is a measure of volatility. III. The higher the standard deviation,the less certain the rate of return in any one given year. IV. The higher the standard deviation,the higher the expected return.

In estimating the future equity risk premium,it is important to include assumptions about:

A stock had returns of 8%,14%,and 2% for the past three years. Based on these returns,what is the probability that this stock will earn at least 20% in any one given year?