Question

1.Another term that refers to the average rate of return is the:

A: variance.

B: standard deviation.

C: real return.

D: mean.

E: histogram.

2. The excess return is computed by ______ the average return for the investment.

A: subtracting the inflation rate from

B: adding the inflation rate to

C: subtracting the average return on the U.S. Treasury bill from

D: adding the average return on the U.S. Treasury bill to

E: subtracting the average return on long-term government bonds from

3. You purchased 300 shares of stock at a price of $21.72 per share. Over the last year, you have received total dividend income of $210. What is the dividend yield?

A: 3.06 percent

B: 3.22 percent

C: 3.17 percent

D: 2.92 percent

E: 2.94 percent

4.Soo Lee owns a stock that has had annual returns of 11.6 percent, 9.3 percent, −22.8 percent, and 34.6 percent over the last four-year period. What is his arithmetic mean return on this investment?

A: 7.94 percent

B: 19.58 percent

C: 14.62 percent

D: 11.47 percent

E: 8.18 percent

5. Soo Lee owns a stock that has had annual returns of 11.6 percent, 9.3 percent, −22.8 percent, and 34.6 percent over the last four-year period. What is his arithmetic mean return on this investment?

A: 7.94 percent

B: 19.58 percent

C: 14.62 percent

D: 11.47 percent

E: 8.18 percent

6. Stock A is expected to return 14 percent in a normal economy and lose 21 percent in a recession. Stock B is expected to return 11 percent in a normal economy and 5 percent in a recession. The probability of the economy being normal is 75 percent and being recessionary is 25 percent. What is the covariance of these two securities?

A: .007006

B: .006563

C: .005180

D: .007309

E: .006274

Answer 1

Solution :- (1)

The Correct Answer is (D) that is Mean

Another term that refers to the average rate of return is the Mean

Mean is just the average which is also calculated same as average rate of return . Means total of the returns divide by number of returns ,

So we say Mean also refers to the Average rate of return

As per HomeworkLib policy we need to answer only one question at once so please ask others as seperate one

Answer 2

mean is the correct option