Exam 10: Lessons From Market History

Six months ago,you purchased 100 shares of stock in ABC Co.at a price of $43.89 a share.ABC stock pays a quarterly dividend of $.10 a share.Today,you sold all your shares for $45.13 per share.What is the total amount of your capital gains on this investment?

The capital gains yield plus the dividend yield on a security is called the:

One year ago,you purchased a stock at a price of $32 a share.Today,you sold the stock and realized a total return of 14.62 percent.Your capital gain was $3.48 a share.What was your dividend yield on this stock?

Alpha Industries stock sold for $39 a share at the beginning of the year.During the year,the company paid a dividend of $3 a share and then ended the year with a stock price of $37.The change in the stock price is best described as a:

A stock had annual returns of 8 percent,14 percent,and 2 percent for the past three years.Based on these returns,what is the probability that this stock will return more than 26 percent in any one given year?

A stock had returns of 16 percent,4 percent,−22 percent,15 percent,and −2 percent for the past five years.What is the variance of these returns?

The average annual return on long-term corporate bonds for the period of 1926 to 2017 was ________ percent.

You purchased 300 shares of Deltona stock for $43.90 a share.You have received a total of $630 in dividends and $14,620 in proceeds from selling the shares.What is your capital gains yield on this stock?

Capital market history shows us that a correct ordering of the average return by asset classes,from lowest to highest,is:

The standard deviation for a set of stock returns can be calculated as the:

What does the historical record reveal about the relationship between the returns on U.S.Treasury bills and the rate of inflation as measured by the consumer price index? Is this relationship what investors would tend to expect? Why or why not?

Three years ago,you purchased a stock at a price of $33.48.The stock paid annual dividends of $.60 per share.Today,the stock is worth $35.20 per share.What is your holding period return?

Over the period of 1926 through 2017,the annual rate of return on ________ has been more volatile than the annual rate of return on ________.

Assume that over the last several decades,the total annual returns on large-company common stocks averaged 12.1 percent,small-company stocks averaged 16.5 percent,long-term government bonds averaged 6 percent,and U.S.T-bills averaged 3.4 percent.What was the average excess return earned by long-term government bonds,and small-company stocks respectively?

Assume a stock had an historical equity risk premium of 5.49 percent and a standard deviation of 11.46 percent over the past two decades.What is the 95.4 percent range for the equity risk premium?

BCD shares are currently selling for $27.38 each.You bought 200 shares one year ago at $26.59 and received dividend payments of $1.27 per share.What was your percentage capital gain for the year?

You invested in long-term corporate bonds and earned 6.8 percent.During that same time period,large-company stocks returned 12.6 percent,long-term government bonds returned 6.4 percent,U.S.Treasury bills returned 4.2 percent,and inflation averaged 3.8 percent.What excess return did you earn?

What are the lessons learned from capital market history? What evidence is there to suggest these lessons are correct?

The Sharpe ratio is computed as the average:

You have a sampling of returns for the Malta Stock Fund.The returns are 7.25 percent,5.63 percent,12.56 percent,and 1.08 percent.What is the mean and variance of this sampling?