Returns and Averages
Six months ago, you purchased 1,800 shares of ABC stock for $46.43 a share. You have received dividend payments equal to $3.30 a share. Today, you sold all your shares for $56.85 a share. What is your dollar return per share on this investment?
$13.72
If you own 400 shares of Alaska Air at $26.01, 200 shares of Best Buy at $19.57, and 350 shares of Ford Motor at $67.10, what is the portfolio weight of Alaska Air?
27.52%
The risk-free rate of return is 6% and the market risk premium is 7%. What is the expected rate of return on a stock with a beta of 1.72?
18.04%
What annual rate of return is earned on a $2,000 investment when it grows to $4,300 in seven years?
11.56%
Suppose you deposit $1,000 in an account paying 8% annual interest. How much money will be in your account in 5 years?
$1,469.33
Six months ago, you purchased 1,800 shares of ABC stock for $46.43 a share. You have received dividend payments equal to $3.30 a share. Today, you sold all your shares for $56.85 a share. What is your percentage return on this investment?
29.55%
If you own 400 shares of Alaska Air at $26.01, 200 shares of Best Buy at $19.57, and 350 shares of Ford Motor at $67.10, what is the portfolio weight of Ford Motors?
62.12%
Assume that the risk-free rate is 6%, and that the market risk premium is 7%. If a stock has a required rate of return of 18.04%, what is its beta?
1.72
LMN Corp’s dividends have grown from $1.85 to $2.15 over the last 5 years. What is the growth rate in dividends?
16.22%
If we deposit $3,000 today in an account paying 10%, how long does it take to grow to $10,000?
12.63 years
What is the arithmetic average for a stock with annual returns of 81%, 1%, -12%, 11%, and 7%?
17.60%
Given the data in Item 1, what is your portfolio return?
7.36%
A stock has an expected return of 18.04%. The beta of the stock is 1.72 and the risk-free rate is 6%. What is the market risk premium?
7%
According to the rule of 72, if my investment is earning 9% annually, it will take ______ years for me to double my money.
8 years
Assume the total cost of a college education will be $60,000 when your child enters college in 15 years. You have $12,000 to invest today. What rate of interest must you earn on your investment to cover the cost of your child’s education?
11.33%
What is the geometric average return for a stock with annual returns of 81%, 1%, -12%, 11%, and 7%?
13.83%
Given the information in Item 2, compute the expected return for stock A.
-4.36%
Given the information in Item 3, what is the weighted Beta for Stock B?
0.3
How much would an investor have to set aside today in order to have $25,000 ten years from now if the current rate is 12%?
$8,049.33
You want to be a millionaire when you retire. If you have $30,000 now and can make 8% interest, how long will it take you to become a millionaire?
45.56 years
What is the standard deviation for a stock with annual returns of 81%, 1%, -12%, 11%, and 7%?
0.36
Given the information in Item 2, what is the expected return on a portfolio comprised of $1,000 in stock A and $5,000 in stock B? You have two minutes to complete this question.
2.34%
Given the information in Item 3, what is the beta for the portfolio?
1.07
Compute the present value of a $900 payment made in nine years when the discount rate is 11 percent.
$351.83
Compute the value in 33 years of a $2,000 deposit earning 9 percent per year.
$34,364.06