# Finance- 17 problems- Due Friday, May 29th by 10PM (EST)

December 8, 2017

1. A portfolio is
invested 29.8% in Stock A, 10.9% in Stock B, and the remainder in Stock C. The
expected returns are 14.6%, 24.5%, and 8.8% respectively. What is the
portfolio’s expected returns?
Note: Enter your
answer in percentages rounded off to two decimal points. Do not enter % in the

2. You own a
portfolio invested 19.2% in Stock A, 19.27% in Stock B, 28.6% in Stock C, and
the remainder in Stock D. The beta of these four stocks are 0.82, 0.69, 0.94,
and 0.91. What is the portfolio beta?
Note: Enter your
then enter as 12.35 in the answer box.

3. You have observed
the following returns on ABC’s stocks over the last five years:
3.8%, 8.3%, 12.1%,
10.9%, 2.3%
What is
the arithmetic average returns on the stock over this five-year period.
Note: Enter your
answer in percentages rounded off to two decimal points. Do not enter % in the

4. Suppose a stock
had an initial price of \$60.63 per share, paid a dividend of \$4.6 per share
during the year, and had an ending share price of \$97.82. What are the
percentage returns?
Note: Enter your
answer in percentages rounded off to two decimal points. Do not enter % in the

5. Suppose a stock
had an initial price of \$70.09 per share, paid a dividend of \$5 per share
during the year, and had an ending share price of \$86.52. What are the
percentage returns if you own 25 shares?
Note: Enter your
answer in percentages rounded off to two decimal points. Do not enter % in the

6. Suppose a stock
had an initial price of \$87.89 per share, paid a dividend of \$4.1 per share
during the year, and had an ending share price of \$97.77. What are the
percentage returns?
Note: Enter your
answer in percentages rounded off to two decimal points. Do not enter % in the

7. Suppose a stock
had an initial price of \$72.88 per share, paid a dividend of \$4.7 per share
during the year, and had an ending share price of \$106.67. What are the dollar
returns?
Note: Enter your
answer rounded off to two decimal points. Do not enter \$ or comma in the answer
box. For example, if your answer is \$12.345 then enter as 12.35 in the

8. You have observed
the following returns on ABC’s stocks over the last five years:
3.9%, 8.7%, -12.8%,
13.9%, -2.7%
What is
the arithmetic average returns on the stock over this five-year period.
Note: Enter your
answer in percentages rounded off to two decimal points. Do not enter % in the

9. You have observed
the following returns on ABC’s stocks over the last five years:
4.1%, 8.5%, -5.9%,
12.6%, -4.2%
What is
the geometric average returns on the stock over this five-year period.
Note: Enter your
answer in percentages rounded off to two decimal points. Do not enter % in the

10. Calculate the

Stock

Invest

Exp Ret

A

\$137

2.4%

B

\$942

17.6%

C

\$313

22.7%

Note: Enter your
answer in percentages rounded off to two decimal points. Do not enter % in the

11. Calculate the

Stock

Invest

Exp Ret

A

\$332

6.4%

B

\$913

19.8%

C

\$1,612

21.6%

Note: Enter your
answer in percentages rounded off to two decimal points. Do not enter % in the

12. You have
observed the following returns on ABC’s stocks over the last five years:
3.8%, 8.1%, 4.8%,
10.2%, 8.9%
What is
the geometric average returns on the stock over this five-year period.
Note: Enter your
answer in percentages rounded off to two decimal points. Do not enter % in the

13. Suppose the
returns for Stock A for last six years was 4%, 7%, 8%, -2%, 9%, and 7%.
Compute the standard
deviation of the returns.
Note: Enter your
answer in percentages rounded off to two decimal points. Do not enter % in the

14. Suppose a stock
had an initial price of \$85.48 per share, paid a dividend of \$6.8 per share
during the year, and had an ending share price of \$94.87. If you own 48 shares,
what are the dollar returns?
Note: Enter your
answer rounded off to two decimal points. Do not enter \$ or comma in the answer
box. For example, if your answer is \$12.345 then enter as 12.35 in the

15. You own a
portfolio invested 21.65% in Stock A, 12.78% in Stock B, 13.99% in Stock C, and
the remainder in Stock D. The beta of these four stocks are 0.48, 1.2, 0.79,
and 1.26. What is the portfolio beta?
Note: Enter your
then enter as 12.35 in the answer box.

16. Based on the
following information, calculate the expected returns:

Prob

Return

Recession

30%

47.4%

Boom

70%

12.7%

Note: Enter your
answer in percentages rounded off to two decimal points. Do not enter % in the