Quiz2_Review_Questions

Quiz2_Review_Questions - 4. The bank tells you that they...

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1. You buy one share of Hormel for $34, and one period later you receive a $2 dividend and sell the share for $42. What is the rate of return? 2. You buy one share of Hormel for $34, and one period later you receive a $2 dividend and the price is $42. In period 2 you also receive a $2 dividend and sell the stock for $45. What is the two year return? 3. If a stocks three year return was 120%, what is the average annual return?
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Unformatted text preview: 4. The bank tells you that they compound interest daily and that the annual interest rate for your savings account is 10%. You put $10,000 in the account for a year. How much did you make? 5. You invest $1.00 in a stock with a one-year return of 10%. The one-year ination rate is 4%. What is the stocks real return rate? 2...
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This note was uploaded on 11/20/2011 for the course FINANCE 640,722 taught by Professor Chabiyo,reeves during the Fall '11 term at Ohio State.

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