# Project #5574 - business finance

 A stock has had returns of −20.00 percent, 30.00 percent, 14.00 percent, −11.00 percent, 36.00 percent, and 28.00 percent over the last six years.

Required:
(a) What are the arithmetic average return for the stock?

 10.67% 12.93% 9.63% 12.83% 15.40%

(b) What are the geometric average return for the stock?

 12.83% 9.63% 15.40% 12.93% 10.67%

 Using the following returns for X and Y.

 Returns Year X Y 1 25.0 % 28.0 % 2 – 20.0 – 7.0 3 13.0 30.0 4 22.0 – 17.0 5 8.0 34.0

Requirement 1:
(a) Calculate the average returns for X.

 8.00% 17.90% 16.01% 9.60% 12.00%

(b) Calculate the average returns for Y.

 11.33% 13.60% 21.23% 17.00% 23.73%

Requirement 2:
(a) Calculate the variances for X.

 0.025624 0.028827 0.035233 0.021353 0.03203

(b) Calculate the variances for Y.

 0.050697 0.037553 0.061963 0.05633 0.045064

Requirement 3:
(a) Calculate the standard deviations for X.

 16.98% 14.61% 17.90% 16.01% 18.77%

(b) Calculate the standard deviations for Y.

 19.38% 24.89% 21.23% 23.73% 22.52%

 Suppose a stock had an initial price of \$82 per share, paid a dividend of \$2.50 per share during the year, and had an ending share price of \$95.

Requirement 1:

Compute the percentage total return.

 18.90% 16.32% 3.05% 15.85% 13.68%

Requirement 2:

What was the dividend yield?

 18.90% 15.85% 3.05% 16.32% 13.68%

Requirement 3:

What was the capital gains yield?

 3.05% 16.32% 13.68% 15.85% 18.90%

 Subject Business Due By (Pacific Time) 05/04/2013 12:00 pm
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