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# Securities and Portfolio Return Computations

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Beginning Stock Price \$73
Ending Stock Price \$82
Dividend \$1.20

Percentage Total Return = #NAME?

CHAPTER 10: PROBLEM 12

Stock Return the past 5 years -18.35% 14.72% 28.47% 6.48% 16.81%

Holding Period Return for the Stock = #NAME? (Note: Subtract your answer by 1 to obtain the correct percentage answer)

CHAPTER 10: PROBLEM 14

Price of Preferred Stock Last Year \$94.83
Current Price of Preferred Stock \$96.20
Preferred Stock Dividend 4.20%
Face Value of Preferred Stock \$100

Total Return = #NAME?

CHAPTER 10: PROBLEM 15

Stock Price 3 Months Ago \$41.75
Current Stock Price \$44.07

First calculate the total return for the 3 months #NAME?
Then calculate the APR by multiplying the answer in cell B35 by 4 #NAME?
EAR (Effective Annual Rate) = #NAME?

CHAPTER 11: PROBLEM 2

Stock A \$3,900
Stock B \$5,700
Total Value of the Portfolio \$9,600
Expected Return on Stock A 9.50%
Expected Return on Stock B 15.20%

Expected Return on the Portfolio = #NAME?

CHAPTER 11: PROBLEM 12

Beta 0.85
Expected Return on the Market 11.50%
Risk-Free Rate 3.40%

Expected Return on the Stock = #NAME?

CHAPTER 12: PROBLEM 1

Beta 1.21
Risk-Free Rate 3.50%
Expected Return on the Market 11%

Cost of Equity = #NAME?

CHAPTER 12: PROBLEM 5

Common Stock weight 70%
Debt weight 30%
Cost of Equity 13%
Cost of Debt 6%
Tax Rate 35%

WACC = #NAME?

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https://brainmass.com/business/capital-asset-pricing-model/securities-portfolio-return-computations-627587

#### Solution Summary

This solution illustrates how to compute the holding period return on common and preferred stock, multi-period holding period return, the expected return on a portfolio, the cost of equity and expected return on a sock using the Capital Asset Pricing Model, and the computation of the weighted-average cost of capital.

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