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October 23, 2014

October 23, 2014

Posted by **Tracey** on Tuesday, October 19, 2010 at 7:27pm.

- Economics -
**James person**, Monday, January 24, 2011 at 7:26pmSuppose that the price of a stock is $50 at the beginning of a year and $53 at the end of the year, and it pays a dividend of $2 during the year. Calculate the stock’s current yield, capital-gains yield, and the return. Show your work for three separate calculations.

Use the capital-asset pricing model to predict the returns next year of the following stocks, if you expect the return to holding stocks to be 12 percent on average, and the interest rate on three-month T-bills will be two percent. Calculate a stock with a beta of -0.3, 0.7, and 1.6. Show your work for three separate calculations.

- Economics -
**Tracey**, Saturday, January 28, 2012 at 5:36pmCurrent Yield - $2/$50 = 4%

Capital Gains - ($53-$50)/50 = 6%

Return: - 4% + 6% = 10%

Hope this helps.

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