# Securities and Portfolio Return Computations

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?

© BrainMass Inc. brainmass.com June 4, 2020, 5:27 am ad1c9bdddfhttps://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.