Stock XYZ had a return of 10.67% in 2018, 15.12% in 2019, -6.75% in 2020, and 21.43% in 2021. What was the holding period return of stock XYZ over the four- year period covering 2016-2019? Round all intermediate calculations to 6 decimal points. Your final answer should be within 0.05% of the correct answer choice. 40.47% 36.07% 44.26% 6.37%

Stock XYZ had a return of 10.67% in 2018, 15.12% in 2019, -6.75% in 2020, and 21.43% in 2021. What was the holding period return of stock XYZ over the four- year period covering 2016-2019? Round all intermediate calculations to 6 decimal points. Your final answer should be within 0.05% of the correct answer choice. 40.47% 36.07% 44.26% 6.37%

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Assume these are the stock market and Treasury bill returns for a 5-year period: Year Stock Market Return (%) T-Bill Return (%) 2016 13.0 0.2 2017 21.0 0.8 2018 -6.2 1.8 2019 29.8 2.1 2020 20.6 0.4 Required: What was the risk premium on common stock in each year? What was the average risk premium? What was the standard deviation of the risk premium? (Ignore that the estimation is from a sample of data.)-- expressed in % (NOTE: 11.31% & 13.68% is incorrect)
Q9 to Q10 below is based on the following information.Current Stock Price (S0) 80Strike/Exercise Price (K) 75Time to Maturity (T) of 1 year 1Risk-free Rate (r) 0.04Volatility 40%N(d1) 0.6777N(d2) 0.5245N(d1) 0.3223N(d2) 0.4755 Q9. Based on the above information and the Black-Scholes-Merton model, which of thefollowing is the correct Delta () of the European Put option?(A) 0.6777 (positive)(B) 0.5245 (positive)(C) -0.6777 (negative)(D) -0.3223 (negative)Answer: _______________ Q10. Based on the above information and the Black-Scholes-Merton model, which ofthe following is closest to the correct no-arbitrage Put Option price?(A) 8.4852(B) 16.4259(C) 11.3392(D) -16.4259Answer: _______________
Assume these are the stock market and Treasury bill returns for a 5-year period: Year Stock Market Return (%) T-Bill Return (%) 2013 35.90 0.21 2014 15.20 0.21 2015 -5.10 0.21 2016 16.90 0.08 2017 25.90 0.10 a. What was the risk premium on common stock in each year? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Year Risk Premium 2013 % 2014 % 2015 % 2016 % 2017 % b. What was the average risk premium? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) c. What was the standard deviation of the risk premium? (Ignore that the estimation is from a sample of data.) (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Q17 The expected dividend of Sony Company for next year has the following probability distributions: 30% OMR 2.000 and 70% OMR 2.890. If the market price of a share is OMR 65.625, what is the required rate of return? a. 25% b. 2% c. 4% d. 8%
The table below lists the annual return on stock W between 2015 and 2019. Year 2015 2016 2017 2018 2019 Annual Return 12% -10% 20% -4% -8% The annual realized compounded return on stock W between 2015 and 2019 is closest to _____. A. 1.33% B. 2.33% C. 2% D. 3%
S3 Q13 Today is June 4, 2020. Stock X is selling at $150 per share. The stock has a dividend yield of 5% per year. There is a call option with an August 18, 2020 expiration date and an exercise price of $145, with an implied volatility of 20%. The annual risk-free rate is 1%, compounded continuously. Shares and options can only be bought and sold in whole numbers. Requires use of normal probability table - see image See image for June 5th data Calculate the value of the delta-dedged portfolio on June 5, 2020 before rebalancing.
47. Use the following information relating to a float-adjusted market-capitalization-weighted equity index. Security Shares Outstanding % of Shares in the Market Float Price End 2020 Price End 2021 Dividend per Share W 20,000 41% $61.00 $38.00 $0.85 X 15,000 37% $54.00 $51.00 $2.15 Y 20,000 53% $34.00 $35.00 $1.12 Z 9000 90% $59.00 Assume that all dividend payments are made at the end of the year. The weight of Security Y in the index on December 31, 2020 is closest to: a. 22.00% b. 30.82% c. 31.05% d. 32.22% e. 37.02%
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8 Roenfeld Corp believes the following probability distribution exists for its stock. What is the coefficient of variation on the company's stock? State of the Economy Boom Normal Recession O 0.4447 O 0.5114 O 0.4891 O 0.4002 O 0.3335 Probability of State Occurring 0.29 0.50 0.21 Stock's Expected Return 25% 15% 5%
S3 Q14 Today is June 4, 2020. Stock X is selling at $150 per share. The stock has a dividend yield of 5% per year. There is a call option with an August 18, 2020 expiration date and an exercise price of $145, with an implied volatility of 20%. The annual risk free rate is 1%, compounded continuously. Shares and options can only be bought and sold in whole numbers. Requires Normal Probability Table see image June 5th data see image What are the gains/losses on shares and call options on June 5, 2020? Waht is the net change in the portfolio value?

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