Chapter2-Problems

Chapter2-Problems - at Risk(P0 A $3.50 $30.00 B $0.50...

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Beginning Ending Stock Dividend Price Price A $1.50 $30.00 $32.00 B $2.00 $28.50 $27.00 C $0.75 $20.00 $24.00 Compute Individual Stock Return Periodic Return = Capital Gain Yield + Dividend Yield Capital Gain is Percent increase (decrease) in stock pric (P1 - P0)/P0 Dividend Yield D1/P0 Beginning Ending Stock Dividend Price Price A $1.50 $30.00 $32.00 B $2.00 $28.50 $27.00 C $0.75 $20.00 $24.00 Stock Capital Gain Cap Gain % Div Yield A $2.00 6.67% 5.00% B ($1.50) -5.26% 7.02% C $4.00 20.00% 3.75% Total Wealth Stock Wealth Gain
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Unformatted text preview: at Risk (P0) A $3.50 $30.00 B $0.50 $28.50 C $4.75 $20.00 Percent Total Total Wealth Beginning Share Stock at Risk (P0) Wealth Return A $150.00 22.12% 11.67% B $128.25 18.91% 1.75% C $400.00 58.98% 23.75% Total $678.25 100.0% Shares Outstanding (millions) 5 4.5 20 ce Shares Outstanding (millions) 5 4.5 20 Per Share Total Return 11.67% 1.75% 23.75% Per Share Total Return 11.67% 1.75% 23.75% Portfolio Weighted Return 2.58% 0.33% 14.01% 16.92%...
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Chapter2-Problems - at Risk(P0 A $3.50 $30.00 B $0.50...

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