FUND. OF CORPORATE FINANCE W/ACCESS >I
15th Edition
ISBN: 9781323510728
Author: Berk
Publisher: PEARSON
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Textbook Question
Chapter 11, Problem 6P
The following table contains prices and dividends for a stock. All prices are after the dividend has been paid. If you bought the stock on January 1 and sold it on December 31, what is your realized return?
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Using the data from the following table,calculate the return for investing in this stock from January 1 to December 31. Prices are after the dividend has been paid.
Stock Price
Dividend
Jan 1
$50.18
Mar 31
$51.11
$0.58
Jun 30
$49.56
$0.58
Sep 30
$51.93
$0.75
Dec 31
$52.53
$0.75
The return from January 1 to March 31 is
enter your response here.
(Round to five decimal places.)
Part 2
The return from March 31 to June 30 is
enter your response here.
(Round to five decimal places.)
Part 3
The return from June 30 to September 30 is
enter your response here.
(Round to five decimal places.)
Part 4
The return from September 30 to December 31 is
enter your response here.
(Round to five decimal places.)
Part 5
enter your response here%.
(Round to two decimal places.)
At the start of the year, you purchased a single stock for $49.15 and one year later received a dividend of $2.88 and then sold the stock for $54.91. What was your total nominal return?
The table below shows your stock positions at the beginning of the year, the dividends that each stock paid during the year, and the stock prices at the end of the year.
Company
Shares
Beginning of Year Price
Dividend Per Share
End of Year Price
Johnson Controls
750
$
74.91
$
1.57
$
86.92
Medtronic
650
59.57
0.81
55.51
Direct TV
900
26.94
26.39
Qualcomm
600
45.08
0.59
40.92
What is your portfolio dollar return and percentage return? (Round your answers to 2 decimal places.)
Portfolio Return
Dollar return
Percentage return
%
Chapter 11 Solutions
FUND. OF CORPORATE FINANCE W/ACCESS >I
Ch. 11 - Prob. 1CCCh. 11 - Why do investors demand a higher return when...Ch. 11 - For what purpose do we use the average and...Ch. 11 - How does the standard deviation of historical...Ch. 11 - What is the relation between risk and return for...Ch. 11 - Prob. 6CCCh. 11 - Prob. 7CCCh. 11 - Prob. 8CCCh. 11 - Prob. 9CCCh. 11 - Does systematic or unsystematic risk require a...
Ch. 11 - What does the historical relation between...Ch. 11 - What are the components of a stock's realized...Ch. 11 - What is the intuition behind using the average...Ch. 11 - Prob. 4CTCh. 11 - How does the relationship between the average...Ch. 11 - Consider two local banks. Bank A has 100 loans...Ch. 11 - What is meant by diversification and how does it...Ch. 11 - Which of the following risks of a stock are likely...Ch. 11 - Prob. 9CTCh. 11 - Prob. 10CTCh. 11 - If you randomly select 10 stocks for a portfolio...Ch. 11 - Why doesn't the risk premium of a stock depend on...Ch. 11 - Prob. 13CTCh. 11 - DATA CASE Today is April 30, 2016, and you have...Ch. 11 - Convert these prices to monthly returns as the...Ch. 11 - Prob. 3DCCh. 11 - Prob. 4DCCh. 11 - Prob. 5DCCh. 11 - What do you notice about the average of the...Ch. 11 - Prob. 1PCh. 11 - Prob. 2PCh. 11 - Prob. 3PCh. 11 - Your portfolio consists of 100 shares of CSH and...Ch. 11 - You have just purchased a share of stock for $20....Ch. 11 - The following table contains prices and dividends...Ch. 11 - Prob. 7PCh. 11 - Prob. 8PCh. 11 - Use the data in SBUX_GOOG.xlsx on MFL to answer...Ch. 11 - Download the spreadsheet from the book's Web the...Ch. 11 - Prob. 11PCh. 11 - Prob. 12PCh. 11 - Prob. 13PCh. 11 - Consider the following five monthly returns: a....Ch. 11 - Explain the difference between the arithmetic...Ch. 11 - Prob. 16PCh. 11 - Prob. 17PCh. 11 - Prob. 18PCh. 11 - Prob. 19PCh. 11 - Prob. 20PCh. 11 - Prob. 21PCh. 11 - You are a risk-averse investor who is considering...
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