The market risk premium for next period is 9.80% and the risk-free rate is 2.70%. Stock Z has a beta of 0.805 and an expected return of 11.80%. Calculate the following. Please write your answers as percentages (e.g. .1234 should be written as 12.34): Market’s reward-to-risk ratio: [1]% Stock Z’s reward-to-risk ratio: [2]%

The market risk premium for next period is 9.10% and the risk-free rate is 2.10%. Stock Z has a beta of 1.212 and an expected return of 14.90%. Calculate the following. Please write your answers as percentages (e.g. .1234 should be written as 12.34): Market’s reward-to-risk ratio: [1]% Stock Z’s reward-to-risk ratio: [2]%

The current price of Janco stock is  $14.73 .  Dividends are expected to grow at  5.50%  indefinitely and the most recent dividend paid yesterday was  $3.72. Compute the following for Janco stock: Please write your answers as a percentage (e.g. .1234 should be written as 12.34): The required rate of return: [1]% The dividend yield: [2]% Capital gains yield: [3]%

An analyst gathered the following information for a stock and market parameters: stock beta =  0.925 ; expected return on the Market =  8.21% ; expected return on T-bills =  4.32% ; current stock Price =  $9.15 ; expected stock price in one year =  $8.75 ; expected dividend payment next year =  $1.39 . Calculate the required return and expected return for this stock. Please write your answers as percentages (e.g. .1234 should be written as 12.34): Required Return: [1]% Expected Return: [2]%

The amount of systematic risk present in a particular risky asset relative to the systematic risk present in an average risky asset, is called the ______.

There is a  47.71%  probability of an average economy and a  52.29%  probability of an above average economy.  You invest  38.23%  of your money in Stock S and  61.77%  of your money in Stock T.  In an average economy the expected returns for Stock S and Stock T are  10.08%  and  8.25% , respectively.  In an above average economy the the expected returns for Stock S and T are  36.03%  and  35.26% , respectively.  What is the expected return for this two stock portfolio? (2.0 points) Please write your answer as percentage (e.g. .1234 should be written as 12.34): Expected Return: [1]%

A stock has monthly returns of [Return1]%, [Return2]% ,  [Return3]% , and [Return4]%. What is the stock’s geometric average return? Please write your answer as a percentage (e.g. .1234 should be written as 12.34).

A 8.19% coupon, 12.0 -year annual bond has a yield to maturity of 7.54%. Assuming the par value is 1,000 and the YTM does not change over the next year, Compute the following: Price of the bond today: [1] Price of the bond in one year: [2] Capital gains yield (please answer as a percentage with 2 decimal places): [3] Current Yield (please answer as a percentage with 2 decimal places): [4]

An analyst gathered the following information for a stock and market parameters: stock beta =  0.903 ; expected return on the Market =  9.89% ; expected return on T-bills =  2.66% ; current stock Price =  $8.48 ; expected stock price in one year =  $11.13 ; expected dividend payment next year =  $2.70 . Calculate the required return and expected return for this stock. Please write your answers as percentages (e.g. .1234 should be written as 12.34): Required Return: [1]% Expected Return: [2]%

Magnetic Corporation expects dividends to grow at a rate of  12.96%  for the next two years.  After two years, dividends are expected to grow at a constant rate of  6.47% , indefinitely.  Magnetic’s required rate of return is  12.21%  and they paid a  $2.79 dividend today.  Compute the following for Magnetic Corporation’s common stock: Dividend at the end of year 1: $[1] Dividend at the end of year 2: $[2] Dividend at the end of year 3: $[3] Price of stock at the end of year 2: $[4] Price of stock today: $[5]