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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