Chapter 12

Chapter 12 - Chapter 12 Question 1 Initial Price Paid Dividend Ending Share Price total return $55.00 $1.20 $73.00 34.91 =(Ending Price-Initial

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Unformatted text preview: Chapter 12 Question # 1 Initial Price Paid Dividend Ending Share Price % total return $55.00 $1.20 $73.00 34.91% =((Ending Price-Initial Price)+Paid Dividen)/Initial Price Question #4 Coupon % Purchase Price Selling Price 8% $1,190 $1,255 b c Total $ Return Total Nominal ROR Inflation Rate Rea ROR a Face Value $1,000 $145 =(Selling Price-Purchase Price+(Face Value*Coupon %)) 12.18% =(Total $ Return/Purchase Price) 7% 4.85% =((1+Total Nominal ROR)/(1+Inflation Rate))-1 chase Price+(Face Value*Coupon %)) urchase Price) l ROR)/(1+Inflation Rate))-1 Question #9 Years 5 5% -11% oc k St a b Average Return Variance Standard Deviation 10.40% 0.01948 13.96% 25% 18% 15% Question #17 Average Return Standard Deviation 6.1% 8.6% -2.3% Z -0.98 Z=(X )/ Probability of Return X find # above on the left-half column, then find the figure to the right th corresponds for example: my Z was -.98, so I would find -0.9 on the left, then go to th and find where .08 meet so my answer would be .1635 N(d) 95% Low 95% High 99% Low 99% High 0.1635 -11.10% 23.30% -19.70% 31.90% 16.35% Answer Answer Answer Answer Answer mn, then find the figure to the right that esponds uld find -0.9 on the left, then go to the right so my answer would be .1635 ...
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This note was uploaded on 04/17/2008 for the course FIN 301 taught by Professor Stumbo during the Spring '08 term at Nevada.

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