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

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 answer box. For example, if your answer is 12.345% then enter as 12.35 in the answer box.

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 answer rounded off to two decimal points. For example, if your answer is 12.345 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 answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

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 answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

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 answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

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 answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

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 answer box.

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 answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

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 answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

10. Calculate the expected returns of your portfolio

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 answer box. For example, if your answer is 12.345% then enter as 12.35 in the answer box.

11. Calculate the expected returns of your portfolio

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 answer box. For example, if your answer is 12.345% then enter as 12.35 in the answer box.

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 answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

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 answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

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 answer box.

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 answer rounded off to two decimal points. For example, if your answer is 12.345 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 answer box. For example, if your answer is 12.345% then enter as 12.35 in the answer box.

17. Suppose the nominal rate is 10.37% and the inflation rate is 4.01%. Solve for the real rate. Use the Fisher Effect formula.

Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.