Exam 10: 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 2012? Rank from highest to lowest.

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?

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?

What are the lessons learned from capital market history? What evidence is there to suggest these lessons are correct?

Winslow,Inc.stock is currently selling for $60 a share.The stock has a dividend yield of 2.5%.How much dividend income will you receive per year if you purchase 800 shares of this stock?

A year ago,you purchased 300 shares of IXC Technologies,Inc.stock at a price of $10.05 per share.The stock pays an annual dividend of $.10 per share.Today,you sold all of your shares for $29.32 per share.What is your total dollar return on this investment?

Which one of the following types of securities has tended to produce the lowest real rate of return for the period 1926 through 2012?

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

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.

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?

You earned a total return of -5% on NoDotCom this year,earned -40% last year,and earned 30% two years ago.Calculate both the three-year holding period return and the average three year return.

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?

The average annual return on long-term corporate bonds for the period of 1926 to 2012 was _____%.

You purchased 300 shares of stock at a price of $37.23 per share.Over the last year,you have received total dividend income of $351.What is the dividend yield?

A stock had returns of 8%,-2%,4%,and 16% over the past four years.What is the standard deviation of this stock for the past four years?

You just sold 200 shares of Langley,Inc.stock at a price of $38.75 a share.Last year you paid $41.50 a share to buy this stock.Over the course of the year,you received dividends totaling $1.64 per share.What is your capital gain on this investment?

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

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

One year ago,you purchased a stock at a price of $60 a share.Today,you sold the stock and realized a total return of 30%.Your capital gain was $8 a share.What was your dividend yield on this stock?