Exam 9: Risk and Return: Lessons From Market History

Which one of the following is a correct ranking of securities based on their volatility over the period of 1926 to 2005 for US securities? Rank from highest to lowest.

Six months ago,you purchased 100 shares of ABC plc at a price of £43.89 a share.ABC pays a quarterly dividend of £.10 a share.Today,you sold all of your shares for £45.13 per share.What is the total amount of your capital gains on this investment?

One year ago,you purchased an equity at a price of £32 a share.Today,you sold the equity and realized a total return of 25%.Your capital gain was £6 a share.What was your dividend yield?

Zolo plc just declared that it is increasing its annual dividend from £1.00 per share to £1.25 per share.If the share price remains constant,then:

Six months ago,you purchased 1,200 shares of ABC plc for £21.20 a share.You have received dividend payments equal to £.60 a share.Today,you sold all of your shares for £22.20 a share.What is your total monetary return on this investment?

You purchased 200 shares at a price of £36.72 each.Over the last year,you have received total dividend income of £322.What is the dividend yield?

The variance of returns is computed by dividing the sum of the:

The returns on your portfolio over the last 5 years were -5%,20%,0%,10% and 5%.What is the arithmetic average return?

A share had the following prices and dividends.What is the geometric average return on this share? Year Price Dividend 1 £23.19 - 2 £24.90 £0.23 4 £23.18 £0.24 4 £24.86 £0.25

A portfolio of large company shares would contain which one of the following types of securities?

Suppose you own a risky asset with an expected return of 12% and a standard deviation of 20%.If the returns are normally distributed,the approximate probability of receiving a return greater than 32% is approximately:

Which one of the following is a correct statement concerning risk premium?

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

The average compound return earned per year over a multi-year period is called the _____ average return.

What are the arithmetic and geometric average returns for a share with annual returns of 21%,8%,-32%,41%,and 5%?

What securities have offered the highest average annual returns over the last several decades? Can we conclude that return and risk are related in real life?

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

You purchased 300 shares of Deltona for £44.90 a share.You have received a total of £630 in dividends and £14,040 in proceeds from selling the shares.What is your capital gains yield?

A capital gain occurs when:

Excelsior shares are currently selling for £25 each.You bought 200 shares one year ago at £24 and received dividend payments of £1.50 per share.What was your total rate of return?