FIN 571 TUTOR Education is Power/fin571tutor.com FIN 571 TUTOR Education is Power/fin571tutor.com | Page 28

What was the average nominal risk premium on the stock ? ( Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place , e . g ., 32.1 .) ************************************************************************************* FIN 571 Week 1 DQ 1
15 . Four months ago , you purchased 1,200 shares of Lakeside Bank stock for $ 21.20 a share . You have received dividend payments equal to $. 55 a share . Today , you sold all of your shares for $ 22.20 a share . What is your total dollar return on this investment ? Question 16 ( Another Set ) Suppose a stock had an initial price of $ 54 per share , paid a dividend of $ 1.30 per share during the year , and had an ending share price of $ 64 . Compute the percentage total return . ( Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places , e . g ., 32.16 .) 17 . You ’ ve observed the following returns on SkyNet Data Corporation ’ s stock over the past five years : 14 percent , – 7 percent , 17 percent , 15 percent , and 10 percent . Suppose the average inflation rate over this period was 1.4 percent , and the average T-bill rate over the period was 5.1 percent . a . What was the average real return on the stock ? ( Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places , e . g ., 32.16 .) b . What was the average nominal risk premium on the stock ? ( Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place , e . g ., 32.1 .) Question 17 ( another Set ) You ’ ve observed the following returns on SkyNet Data Corporation ’ s stock over the past five years : 17 percent , – 15 percent , 19 percent , 29 percent , and 10 percent . Suppose the average inflation rate over this period was 2.6 percent , and the average T-bill rate over the period was 4.3 percent . a . What was the average real return on the stock ? ( Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places , e . g ., 32.16 .) b .

What was the average nominal risk premium on the stock ? ( Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place , e . g ., 32.1 .) ************************************************************************************* FIN 571 Week 1 DQ 1

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