Define actual rate of return on stock

Q: terpret the stock data

A: The given stock data is in the form of candle stick chart.

Q: Discuss the rationale behind the cross-sectional impact of investor sentiment on stock returns.

A: The stock returns are the yield on shares and stocks. Returns of the stock are affected by different…

Q: The wider the dispersion of returns on a stock, the:

A: Investors evaluate the portfolio or security on the basis of risk profile. The risk profile can be…

Q: Discuss the main factors that influence the prices of securities on a stock exchane.

A: There are many factors that influence the prices of securities.

Q: Define risk premium for individual Stock i, RP

A: Risk premium for an individual stock “i”: A risk premium for an individual stock ‘i’ is the return…

Q: .What is the value of the stock?

A: The constant growth model is a method used for finding the stock price. It is also called the…

Q: What is the cost of the preferred stock, including flotation?

A: Cost of Preferred stock Rp = Annual Dividend/Current market price - floatation cost

Q: distinguish between dilutive and antidilutive securities, and describe the implications of each for…

A: Diluted Securities are the financial instruments that can be converted into common stock and may…

Q: = issue price per share of common stocks

A: Common stock $400,000 Additional paid in capital in excess of par $200,000 Total value of…

Q: Common stock has par value, and market value. Explain briefly these values. Which one is most…

A: Par value of common stock : Par value corresponds to the equity valuation specified in the corporate…

Q: Calculate the maximum stock level

A: Maximum level of stock = Reorder level + Reorder quantity - (Minimum usage * Minimum lead time)

Q: Describe the possible forms in which a return could be received for bonds, common stock, and…

A: Financial Assets refers to the assets which can be acquired for investment and also be liquidated…

Q: What does the meaning of maximum and minimum price in the stock performance graph? how to know which…

A: Succinctly summarized, a stock chart is a graph that illustrates the price of a stock over a certain…

Q: Explain and implement the accounting for stock options.

A: Stock option compensation is an option related to compensation that is given to the key employees of…

Q: discuss what is the stock price?

A: >Stocks, when referred to in relation with the paid in capital of a corporation, refers to the…

Q: Calculate the yield of the following stock.

A:

Q: Define risk premium for individual Stock i

A: The risk premium for an individual stock i It is the expected ROR on investment that exceeds…

Q: Define cost of preferred stock

A: Preferred stocks are the stock which possesses some features of debt and some features of equity.…

Q: Differentiate between the terms expected rate of return, required rate of return, and historical…

A: The expected rate of return is the normal rate of return that the speculation can anticipate. By and…

Q: Treasury stock is generally accounted for by the?

A: The question is based on the concept of cost accounting. Companies occasionally buy their own shares…

Q: Define Treasury stock.

A: Treasury stock is stock repurchased by the issuer and intended for retirement or resale to the…

Q: On what do stock valuations rest?

A: The answer:

Q: Explain the accounting for stock-appreciation rights plans.

A: Share Appreciation Rights (SARs): The awards which offer the employees the right to receive either…

Q: What is a stock’s volatility?

A: Stock Volatility:   Volatility is defined as a statistical measure of the dispersion of the returns…

Q: Define required rate of return on stock

A: Answer: Usually, return is a benefit received on investment. This covers any change in stock…

Q: Calculate the expected return for Stock A.

A: Expected Return: It represents the profit or loss expected by an investor on an investment. It is…

Q: Explain how to find the value of a nonconstant growth stock

A: Introduction: Non-constant models of growth presume that the valuation can fluctuate over time. This…

Q: Return formula for common stock?

A: Applying capital asset pricing model (CAPM),

Q: What are the arithmetic and geometric returns for the stock?

A: Arithmetic and Geometric mean are used to calculate the expected mean of the stock Arithmetic Mean…

Q: Define stock option compensation plan

A: Employee Stock Option Plans is a plan  wherein the employees have the right to buy a number of…

Q: how to calculate perpetual preferred stock

A: Perpetual preferred stock is one which continues to give or distribute dividend for an infinite…

Q: How does the current price of a stock depend on its own past values, as well as the current and past…

A: Market index of stock gauges the stock market which assists investors to analyze the market…

Q: To estimate the required rate of return on a stock we can use the Capital Asset Pricing Model (CAPM)…

A: The required rate of return on a stock can be defined as a rate of return which an investor would…

Q: what is the difference between individual stocks and the stock market

A: Investing means allocating the funds in different securities, assets, or businesses with the motive…

Q: Par value of a stock refers to the ________.

A: Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument…

Q: What are the two sources, or components of return for stock?

A: A share in the ownership of a company is known as stock. When stock is purchased a small piece in…

Q: Define Retired stock.

A: Securities that have been repurchased by the issuer out of the company's retained earnings and…

Q: Define stock repurchase

A: STOCK REPURCHASE- ''Stock repurchase or repurchase could be a thanks to come money to investors,…

Q: How do you calculate conditional volatility of a stock returns?

A: Volatility represents how large an asset's price swing around the mean price i.e the statistical…

Q: Define required rate of return on Stock i

A: Stock refers to the security that represents the ownership of the stockholders in the company. The…

Q: which is the return on the risk capital, includes stock price appreciation plus dividends received…

A: which isthe return on the risk capital, includes stock price appreciation plusdividends received…

Q: Define outstanding stock.

A: Outstanding Stock is the stock which is currently outstanding and held by the shareholders of the…

Q: Define Stockout costs.

A: Stock out costs are the cost which arises when an organization is not able to fulfil the demand due…

Q: uss whether the stock pric n in the stock market.

A: Efficient Market Hypothesis -:An significant debate in investors is whether the stock market is…

Q: Divided discount model DDM how to the valuation of the aggregate stock market?

A: What is DDM (Dividend discount model)? The Dividend Discount Model (DDM) is a quantitative strategy…

Q: Calculated the expected return of each stock

A: Expected Return on Stock = Sum of (Probability x Return) in each case