Chase Bank pays an annual dividend of $1.07 per share on its common stock. One y
ID: 2649876 • Letter: C
Question
Chase Bank pays an annual dividend of $1.07 per share on its common stock. One year ago, this stock sold for $49.00 per share. Today, the stock is priced to sell at $31.20 a share. What is the capital gains yield?
-29.58 percent
-25.41 percent
-36.33 percent
-34.14 percent
A stock produced the following returns over the past 5 years: 20 percent, 5.6 percent, -11.8 percent, 26.8 percent, and 12.6 percent. What is the arithmetic average risk premium for this stock if the average risk-free rate for the period was 5.7 percent?
5.64 percent
4.94 percent
4.74 percent
5.44 percent
Assume that for a 5-year period, large-company stocks had annual rates of return of 25.04 percent, -9.90 percent, -12.69 percent, -18.10 percent, and 32.89 percent. What is the variance of these returns?
0.0591
0.0613
0.0525
0.0559
A stock produced annual rates of return of 11.1 percent, -16.9 percent, 3 percent, and 14.2 percent over the past 4 years, respectively. What is the geometric average return for this period?
2.20 percent
2.08 percent
2.57 percent
2.84 percent
The stock of Blue Water Tours, Inc. is expected to return 16.00 percent in a boom economy, 11.00 percent in a normal economy, and lose 10.00 percent in a recessionary economy. What is the expected rate of return on this stock if there is a 8.00 percent chance the economy booms, and an 83.00 percent chance the economy will be normal?
9.51 percent
8.34 percent
9.26 percent
9.99 percent
Chase Bank pays an annual dividend of $1.07 per share on its common stock. One year ago, this stock sold for $49.00 per share. Today, the stock is priced to sell at $31.20 a share. What is the capital gains yield?
Explanation / Answer
Answer:
Capital Gain Yield = (Current Price