Syntex is considering an investment in one of two stocks. given the


Question 1

Syntex is regarding an cannonade in one of two supplys. Given the instruction that follows, which cannonade is rectify, grounded on the imperil (the measure gap) and repay?

Common Stock    A                                                                      Common Stock     B                                      

Probability           Return                                                       Probability               Return               

0.20                             10%                                                                      0.10                                  -7%                                                                

0.60                             16%                                                                      0.40                                    5%

0.20                             21%                                                                      0.40                                   13%

                                                                                                                     0.10                                   20%

Given the instruction in the board, what percent is the rebuke of repay for Supply A?

 

Question 2

On December 5, 2007, the dishonorable supply of Google, Inc. (GOOG) was trading at $698.51. One year succeeding, the shares sold for $283.99. Google has never hired a dishonorable supply dividend. What rebuke of repay would you accept wined on your cannonade had you purchased the shares on December 5, 2007? The rebuke of repay you would accept wined is what percent?

Question 3

Caswell Enterprises had the forthcoming end-of-year supply figures aggravate the decisive five years and hired no dividends.

Time                                                   Caswell

1                                                                                                                 $9

2                                                                                                                 14

3                                                                                                                 10

4                                                                                                                   7

5                                                                                                                   9

a. Calculate the medium rebuke of repay for each year from the balance instruction.

b. What is the arithmetic medium rebuke of repay wined by investing in Caswell's supply aggravate this age?

c. What is the geometric medium rebuke of repay wined by investing in Caswell's supply aggravate this age?

d. Regarding the inception and limit supply figures for the five-year age are the similar, which cast of medium rebuke of repay best describes the annual rebuke of repay wined aggravate the age (arithmetic or geometric)?

e. The annual rebuke of repay at the end of year 2 is what percent

 

Question 4

 

The dishonorable supply of Plaxo Enterprises had a chaffer figure of $10.44 on the day you purchased it harmonious one year ago. During the spent year, the supply hired a dividend of $1.43 and determined at a figure of $11.66. What rebuke of repay did you win on your cannonade in Plaxo's supply? The rebuke of repay you wined on Plaxo's supply is what percent?