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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

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    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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