Exam 10: Some Lessons From Capital Market History

One year ago, Brookes purchased 200 shares of Surfer Bay stock for $22,250.Today, he sold those shares for $114.00 per share.What is the total return on this investment if the dividend yield is 1.2 percent?

Which one of the following statements is correct?

The variance is the average squared difference between which of the following?

Assume you earned 12.3 percent on your investments for a time period when the risk-free rate was 4.25 percent and the inflation rate was 1.2 percent.What was your real rate of return for the period?

One year ago, Marcus purchased 400 shares of Maverick Data stock for $21.052.Today, he sold those shares for $56.00 per share.What is the total return on this investment if the dividend yield is 1.9 percent?

Which one of the following had a zero standard deviation of returns for the period of 1926-2014?

A stock has produced returns of 11 percent, 4 percent, -5 percent, -8 percent, and 9 percent for the past five years, respectively.What is the standard deviation of these returns?

For the period 1926-2014, which one of the following had the smallest risk premium?

One year ago, you purchased a 7 percent coupon bond with a face value of $1,000 when it was selling for 102.5 percent of par.Today, you sold this bond for 104 percent of par.What is your total dollar return on this investment?

Windsor stock has produced returns of 13.8 percent, 11.7 percent, 2.3 percent, -21.4 percent, and 8.9 percent over the past five years, respectively.What is the variance of these returns?

Five years ago, you purchased 800 shares of stock.The annual returns have been 6.4 percent, -28.7 percent, 2.1 percent, 14.4 percent, and 32.6 percent, respectively.What is the variance of these returns?

Which one of the following is the hypothesis that securities markets are efficient?

Paneer Asphalt Materials pays a constant annual dividend of $1.26 per share on its stock.Last year at this time, the market rate of return on this stock was 14.9 percent.Today, the market rate has fallen to 12.5 percent.What would your capital gains yield have been if you had purchased this stock one year ago and then sold the stock today?

One year ago, LaTresa purchased 300 shares of Outland Co.stock for $7,092.The stock does not pay any regular dividends but it did pay a special dividend of $.43 a share last week.This morning, she sold her shares for $24.05 a share.What was the total percentage return on this investment?

Which one of the following combinations will always result in an increased dividend yield?

The period 1926-2014 illustrates that U.S.Treasury bills:

On a particular risky investment, investors require an excess return of 7 percent in addition to the risk-free rate of 4 percent.What is this excess return called?

Which one of the following is the most apt to have the largest risk premium in the future based on the historical record for 1926-2014?

Over the period of 1926-2014:

Suppose a stock had an initial price of $47 per share, paid a dividend of $0.63 per share during the year, and had an ending share price of $ 38.What was the capital gains yield?