Finance Problems-Investment Returns_Beta_Dividend Yields2

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Finance Problems-Investment Returns_Beta_Dividend Yields2. P12-13 Calculating Investment Returns [LO1]You bought one of Great White Shark Repellant Co.’s 8 percent coupon bonds one year ago for $800.These bonds make annual payments and mature 6 years from now. Suppose you decide to sell yourbonds today, when the required return on the bonds is 11 percent. If the inflation rate was 3.4 percentover the past year, what was your total real return on investment?15.32%15.22%15.98%23.19%5.55% 10. 12-1 MC Qu. 65Last year, you purchased a stock at a price of $53 a share. Over the course of the year, you received $1.6 individends and inflation averaged 2.6 percent. Today, you sold your shares for $55.1 a share. What is yourapproximate real rate of return on this investment?9.5 percent2.2 percent7.0 percent9.6 percent4.4 percent 11. 13-4 MC Qu. 88The expected return on JK stock is…The expected return on JK stock is 13.40 percent while the expected return on the market is 10.8 percent. The betaof JK stock is 1.4. What is the risk-free rate of return?3.80 percent4.30 percent4.70 percent2.90 percent3.22 percent 14. 13-4 MCWhat is the beta of the following portfolio? StockABC Amount Invested$2,000$2,700$5,500 Security Beta1.101.460.84 1.0791.1021.0080.1491.055 15. 12-1 MC Qu. 57You own 200 shares of Western Feed Mills stock valued at $36.72 per share. What is the dividend yield if your annualdividend income is $282?2.8 percent5.9 percent11.1 percent13.0 percent3.8 percent 17. 13-4: MC Qu. 85The risk-free rate of return is 4 percent and the market risk premium is 10 percent. What is the expected rate of returnon a stock with a beta of 1.28?13.1217.929.1216.8012.80