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You made an investment in your 401k account of $5,000 in a mutual fund that pay…

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Wize University Introduction to Finance Textbook > Risk, Return & Portfolio Theory

Ex-Post Risk and Return

3 Activities

You made an investment in your 401k account of $5,000 in a mutual fund that pays quarterly dividends. The price of each unit the day you made the investment is $100. The following year you invested another $7,000 in your 401k account at a price of $35 per unit. How much would you have in your account two years after your initial investment if you know that the annual income yield of the mutual fund is 9% and a mutual fund unit is trading at $80 today?
More Ex-Post Risk and Return Questions:
You purchased a stock for $34 three years ago. The price of the stock increased by $1.88 in the first year, then decreased by $2.89 in the second year, and today is trading at $43.90.
You received a dividend of $0.15 in year 1, $0.20 in year 2 and $0.25 in year 3.
What was your income yield in the third year?
You purchased a stock for $34 three years ago. The price of the stock increased by $1.88 in the first year, then decreased by $2.89 in the second year, and today is trading at $43.90.
You received a dividend of $0.15 in year 1, $0.20 in year 2 and $0.25 in year 3.
What was your return in the second year?
Karla bought shares of ABC Company for $88.22 two years ago. The stock paid quarterly dividends of $0.48. What is her annualized total return if she can sell the stock today for $94.55?
Karla bought shares of ABC Company for $88.22 two years ago. The stock paid quarterly dividends of $0.48. What is the total return if she can sell the stock today for $94.55?
Karla bought shares of ABC Company for $88.22 two years ago. The stock paid quarterly dividends of $0.48. What is the capital gain yield if she can sell the stock today for $94.55?
Karla bought shares of ABC Company for $88.22 two years ago. The stock paid quarterly dividends of $0.48. What is the income yield if she can sell the stock today for $94.55?
Which of the following is a true statement?
Use the following two statements to answer this question:
I. Risk is the possibility of losing money in your investments.
II. Ex post returns are future returns while ex ante returns are actual returns.
Suppose you have earned a total return of 12% on the 400 shares of ABC Company that you purchased for $7,500 last year. ABC has paid out five equal dividends over this period. What is the amount of the dividend if the current price per share of ABC stock is $10.00?
What will be the selling price in one year of a stock that is currently selling for $10.00, expected to pay a $2.00 dividend, and have a capital gain of 10%.
Meghan paid $53.44 for one share of SOS Company one year ago. The stock paid twelve monthly dividends of $0.10 each during the year, and is selling for $34.66 now. What are the income yield and capital gain yield for SOS over the past year?
Sean bought shares in PMP Company for $27.89 three years ago. Since then, he collected three dividends of $2.40 and today the stock is trading at $33.41. What is his holding period return?
What is the holding period return on a bond that was purchased 4 years ago for $890.44 and sold today for $1,000. The bond has a coupon rate of 8% paid semi-annually and a face value of $1,000.
Cyrus bought a share of WIZE Company for $58.90 one year ago. The stock paid a semi-annual dividend of $1.80. What is the return on investment if the stock is selling for $64.40 today?
Cyrus bought a share of WIZE Company for $58.90 one year ago. The stock paid a semi-annual dividend of $1.80. What is the capital gain yield if the stock is selling for $64.40 today?
Cyrus bought a share of WIZE Company for $58.90 one year ago. The stock paid a semi-annual dividend of $1.80. What is the income yield if the stock is selling for $64.40 today?
What is the holding period return on a bond that was purchased 4 years ago for $890.44 and sold today for $1,000. The bond has a coupon rate of 8% paid semi-annually and a face value of $1,000.