Calculating the Dividend yield

Calculating the Dividend yield - ASSIGNMENT 3 DUE Wednesday...

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Unformatted text preview: ASSIGNMENT 3 DUE: Wednesday, October 30th at 9:00am (EST) in Jacobs 365 (Singapore Deadline = Wednesday, October 30th at 9:00pm Singapore Time) You may work in a group of up to 4 on this Assignment. Please indicate clearly on all submitted Assignments who the members of the group are. Please note, all assignments submitted with more than 4 group members will automatically receive a 0 grade. 1. You purchased 1,000 shares of stock for $33 per share exactly one year ago. During the year, the stock paid a $.50 dividend per share and the current stock price is $27 per share. The inflation rate the last year was 2%. Answer the following (showing all work): (a) Calculate the actual return (also called percentage return) on your investment over; the last‘ year. . x ‘ {3‘ ._ V_ a; \- ’1 hi":‘ C (c) Calculate the real rate of return on the stock. 2. You are interested in buying a stock that has a price of $62. that next year there is: a 10% _7 W7 “(13) Whatie the expected standard deyiation of the stock? 7 J“[email protected] V, s. Oi «\C Aduc‘x Relm Tm}. —- C L: ".' I ,I. if I. it i i 1 :.—~ r \ P year" y , in. , . W25“ if? \L "(_~" 1‘ f .i;\~Ai '2: I M , 44:. A :0 l6; _ j? ., +3E~>C \Ji‘ :‘ Ii: k . v l 51L 1‘ \ You have projected _ probability the stock will equal $10, a 20% z ’7.“ ~‘.' g. .vu- ft.“ m”, 3.. ‘ ‘2 E\’ ‘ 2, ,_. . ) ._._.- 1K "‘7 7 '5 ‘ 1‘, “i E .5. A- “ 1m _ ‘4» _ “A % X " " '. V: v ‘ \( l r l - ,y ! {PVEL(§\.\?,. . PXGFEQ‘Y, ,- ,-(." t .r ~ 5 J kl I vi iv, 3" : I a , . "“i"‘;““‘ “i: it e; "" “ EWE‘?%£‘?§¥EEL§DE§ 3: , ‘-_ F“? "Ta-L5? r C ’ 15 V l« l‘ ‘1! {\‘2. AOHWCELGE- {Eymi‘umzl ‘ _- ;-’I’ L ...
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