Accounting Question

1. You purchased one share of Best Buy CO., Inc for $55.11 per share. The companypaid a dividend of $7.46 per share during the year, and had an ending share price of
$68.12. What is the percentage return?
Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the
answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.
2. Suppose you purchased one share of ABC, Inc for $52.75 per share. The company
paid a dividend of $5.37 per share during the year, and had an ending share price of
$54.2. What is the capital gains yield?
Note: Convert your answer to percentage and round off to two decimal points. Do not enter % in
the answer box.
3. You have observed the following returns on ABC’s stocks over the last four years:
13.69%, 23.43%, -14.86%, 13.27%,
4.What is the geometric average returns on the stock over this four-year period.
Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the
answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.
5. You own a portfolio that has $1,165 invested in Stock A and $1,732 invested in Stock B.
If the returns on these stocks are 18.35% and 12.89%, respectively, what is the return on
the portfolio?
Note: Enter your answer in percentages rounded off to two decimal points. Do not enter
% in the answer box.
6.You own the following stocks in your portfolio. What is the beta of your portfolio.
Stock
Invested Amount
Beta
A
8,913
1.64
B
4,084
1.06
C
1,179
0.74
D
5,921
1.36
Note: Enter your answer rounded off to two decimal points.
7.Market beta is a measurement of systematic risk and will affect the expected risk. T/F
What is the standard deviation of the following observations:
18%, 15%, -19%, 6%, and 15%, respectively.
Note: Enter your answer as a percentage rounded off to two decimal points. Do not enter % in
the answer box.
8. ABC, Inc., has a beta of 1.78. The risk-free rate is 2.52% and the market risk premium is
4.12%. What is the required rate of return on ABC’s stock?
Note: Convert your answer to percentage and round off to two decimal points.