A stock had the following prices and dividends.What is the geometric average return on this stock? $\begin{array}{l} \text { Year Price Dividend }\\ \begin{array}{lll} 1 & \$ 23.19 & - \\ 2 & \$ 24.90 & \$ .23 \\ 3 & \$ 23.18 & \$ .24 \\ 4 & \$ 24.86 & \$ .25 \end{array} \end{array}$

A) 3.2% B) 3.4% C) 3.6% D) 3.8% E) 4.0% A) 3.2% B) 3.4% C) 3.6% D) 3.8% E) 4.0%

Exam 10: Risk and Return: Lessons From Market History

A stock had returns of 8%, 39%, 11%, and -24% for the past four years.Which one of the following best describes the probability that this stock will NOT lose more than 43% in any one given year?

(Multiple Choice)

4.8/5

(41)

Question 21

Eight months ago, you purchased 400 shares of Winston, Inc.stock at a price of $54.90 a share.The company pays quarterly dividends of $.50 a share.Today, you sold all of your shares for $49.30 a share.What is your total percentage return on this investment?

(Multiple Choice)

4.7/5

(36)

Question 22

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?

(Multiple Choice)

4.8/5

(40)

Question 23

Over the period of 1926 to 2008, the average rate of inflation was _____%.

(Multiple Choice)

5.0/5

(28)

Question 24

The average annual return on small company stocks was about _____ percentage points greater than the average annual return on large-company stocks over the period of 1926 to 2008.

(Multiple Choice)

4.9/5

(41)

Question 25

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.

(Multiple Choice)

4.9/5

(29)

Question 26

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

(Multiple Choice)

5.0/5

(36)

Question 27

You purchased 300 shares of Deltona, Inc.stock 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 on this stock?

(Multiple Choice)

4.9/5

(43)

Question 28

A year ago, you purchased 300 shares of IXC Technologies, Inc.stock at a price of $9.03 per share.The stock pays an annual dividend of $.10 per share.Today, you sold all of your shares for $28.14 per share.What is your total dollar return on this investment?

(Multiple Choice)

4.9/5

(39)

Question 29

Six months ago, you purchased 1,200 shares of ABC stock 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 dollar return on this investment?

(Multiple Choice)

4.8/5

(35)

Question 30

A stock has returns of 3%, 18%, -24%, and 16% for the past four years.Based on this information, what is the 95% probability range for any one given year?

(Multiple Choice)

4.9/5

(37)

Question 31

The return earned in an average year over a multi-year period is called the _____ average return.

(Multiple Choice)

4.8/5

(35)

Question 32

The return pattern on your favorite stock has been 5%, 8%, -12%, 15%, 21% over the last five years.What has been your average return and holding period return over the last 5 years?

(Multiple Choice)

4.7/5

(39)

Question 33

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 percentage capital gain this year?

(Multiple Choice)

4.7/5

(38)

Question 34

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

(Multiple Choice)

4.8/5

(36)

Question 35

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:

(Multiple Choice)

4.8/5

(42)

Question 36

A stock has an expected rate of return of 8.3% and a standard deviation of 6.4%.Which one of the following best describes the probability that this stock will lose 11% or more in any one given year?

(Multiple Choice)

4.9/5

(39)

Question 37

A stock had the following prices and dividends.What is the geometric average return on this stock? Year Price Dividend 1 \ 23.19 - 2 \ 24.90 \ .23 3 \ 23.18 \ .24 4 \ 24.86 \ .25

(Multiple Choice)

4.9/5

(32)

Question 38

Which country has the lowest stock market risk premium?

(Multiple Choice)

4.9/5

(42)

Question 39

A capital gain occurs when:

(Multiple Choice)

4.7/5

(42)

Question 40

Showing 21 - 40 of 76

Exam 10: Risk and Return: Lessons From Market History

A stock had returns of 8%, 39%, 11%, and -24% for the past four years.Which one of the following best describes the probability that this stock will NOT lose more than 43% in any one given year?

Eight months ago, you purchased 400 shares of Winston, Inc.stock at a price of $54.90 a share.The company pays quarterly dividends of $.50 a share.Today, you sold all of your shares for $49.30 a share.What is your total percentage return on this investment?

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 2008, the average rate of inflation was _____%.

The average annual return on small company stocks was about _____ percentage points greater than the average annual return on large-company stocks over the period of 1926 to 2008.

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

You purchased 300 shares of Deltona, Inc.stock 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 on this stock?

A year ago, you purchased 300 shares of IXC Technologies, Inc.stock at a price of $9.03 per share.The stock pays an annual dividend of $.10 per share.Today, you sold all of your shares for $28.14 per share.What is your total dollar return on this investment?

Six months ago, you purchased 1,200 shares of ABC stock 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 dollar return on this investment?

A stock has returns of 3%, 18%, -24%, and 16% for the past four years.Based on this information, what is the 95% probability range for any one given year?

The return earned in an average year over a multi-year period is called the _____ average return.

The return pattern on your favorite stock has been 5%, 8%, -12%, 15%, 21% over the last five years.What has been your average return and holding period return over the last 5 years?

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 percentage capital gain this year?

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

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:

A stock has an expected rate of return of 8.3% and a standard deviation of 6.4%.Which one of the following best describes the probability that this stock will lose 11% or more in any one given year?

A stock had the following prices and dividends.What is the geometric average return on this stock? Year Price Dividend 1 \ 23.19 - 2 \ 24.90 \ .23 3 \ 23.18 \ .24 4 \ 24.86 \ .25

Which country has the lowest stock market risk premium?

A capital gain occurs when:

Introduction to Corporate Finance

Financial Statements and Cash Flow

Financial Statements Analysis and Long-Term Planning

Discounted Cash Flow Valuation

Net Present Value and Other Investment Rules

Making Capital Investment Decisions

Risk Analysis, Real Options, and Capital Budgeting

Interest Rates and Bond Valuation

Stock Valuation

Return and Risk: the Capital Asset Pricing Model

An Alternative View of Risk and Return: the Arbitrage Pricing Theory

Risk, Cost of Capital, and Capital Budgeting

Efficient Capital Markets and Behavioral Challenges

Long-Term Financing: an Introduction

Capital Structure: Basic Concepts

Capital Structure: Limits to the Use of Debt

Valuation and Capital Budgeting for the Levered Firm

Dividends and Other Payouts

Issuing Securities to the Public

Leasing

Options and Corporate Finance

Options and Corporate Finance: Extensions and Applications

Warrants and Convertibles

Derivatives and Hedging Risk

Short-Term Finance and Planning

Cash Management

Credit and Inventory Management

Mergers and Acquisitions

Financial Distress

International Corporate Finance

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