# FIN 3403 Principles of Financial Mgmt (Spring 2015) Chapter 12 Quiz

June 13, 2016

Question
Review Test Submission: Chapter 12 Quiz

Course Principles of Financial Mgmt [Spring 2015]

Test Chapter 12 Quiz

Started 2/10/15 3:54 PM

• Question 1

1 out of 1 points

The average squared difference between the actual return and the average return is called the:

S

• Question 2

1 out of 1 points

A stock had the following prices and dividends. What is the geometric average return on this stock?

• Question 3

1 out of 1 points

Seven months ago, you purchased 300 shares of Stadford, Inc. stock at a price of \$48.30 a share. The company pays quarterly dividends of \$.40 a share. Today, you sold all of your shares for \$45.20 a share. What is your total percentage return on this investment?

• Question 4

1 out of 1 points

Baker’s Chocolate common stock had annual returns of 13.7 percent, 11.3 percent, 4.6 percent, and 8.9 percent over the last four years, respectively. What is the standard deviation of these returns?

• Question 5

0 out of 1 points

Which one of the following is a correct ranking of securities based on their volatility over the period of 1926 – 2010? Rank from highest to lowest.

• Question 6

1 out of 1 points

Which one of the following categories of securities had the highest average return for the period 1926 – 2010?

• Question 7

1 out of 1 points

Which one of the following categories of securities had the lowest average risk premium for the period 1926 – 2010?

• Question 8

1 out of 1 points

What are the geometric and arithmetic average returns for a stock with annual returns of 5 percent, 10 percent, 8 percent, and 16 percent?

• Question 9

1 out of 1 points

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

• Question 10

1 out of 1 points

Assume that P1 is the purchase cost, P2 represents the sale proceeds, and d represents dividend income. Given these definitions, which one of the following is the correct formula for the annual return on an equity security?

• Question 11

1 out of 1 points

Which one of the following correctly describes the dividend yield?

• Question 12

1 out of 1 points

You purchased 300 shares of stock at a price of \$35.86 per share. Over the last year, you have received total dividend income of \$336. What is the dividend yield?