5. Estimate the expected yield if you know the following details P i R i 0.25 0.

Question

5.       Estimate the expected yield if you know the following details
Pi Ri  
0.25 0.2
         0.5
0.25 0.4

to. 20%

b. 30%

c. 40%

d. Impossible to determine

6. On the risk and performance model the dispersion represents

to. sample size.

b. the asset range.

c. risk.

d. performance.

7. Acquired an action of MSG, Inc. The purchase of the asset value is $25.00. You has revised its price in the market at the end of each month since January (date of purchase) until March. Their total yield was 25%, 20% and 25%, respective to each month. Hopes that actions behave in the same way during the next three months so it is assigned a probability of 35%, 30% and 35% respectively. The expected yield of the asset would be __23.50% _.

8. With the data of the previous problem the variance is ___.000525/.0525%___.

9. Using data from the previous problem, the risk would be ___.022913 / 2.2913% _.

10. The dispersion of the asset is located between _ 2.2913% _.

11. Total investment yield is determined

to. (P + CF1) ÷ P0

b. (P) ÷ P0

c. (P1 - P0) ÷ P1

d. P1 ÷ (1 + r)

12. The expected performance of an investment is subject to their level of risk. I.e., at greater risk _ of _ is greater.

to. the relationship / performance

b. the expectation / performance

c. performance / expected

d. the value / performance

13. ATT sells its shares today at $40.00, annually pay dividends of $3.00 per share and its performance of capital is 8%, then the total return on investment would be (use two spaces decimal).

to. 7.50%

b. 9.75%

c. 12.50%

d. 15.5%

14. Of MSFT stock market is sold at $65.00, John bought it a year ago at $70.00 and this year received dividends for 5% of your purchase price. The total yield which shows John investment today, is

to. 5%

b. -3%

c. 2.73%

d. - 2.14%

The investor acquired five shares of AAPL accessories (1) $141, (2) $152, (3) $148, (4) $139 and (5) $150 in a year. Its current value in the market for the shares is $4.00, $8.00,-($6.00), $12.00 and $3.00 for each action respectively. The probability of occurrence of each performance is determined by the ratio of the value of each share at the time of purchase, divided by the total value of the portfolio at the time of purchase (consider two decimal places).

15. Then the performance expected of the action number 3 would be ________

16. The action number ___, shows the highest performance per share _.

17. Action 2, market price is _

18. The expected yield (RE) of the shares of AAPL would be _____.

19. The probability assigned to action 5, is _____.

20. The total portfolio to purchase price was _.

Explanation / Answer

6,

C. Risk

Dispersion is a statistical term describing the size of the range of values expected for a particular variable. In finance, dispersion is used in studying the effects of investor and analyst beliefs on securities trading, and in the study of the variability of returns from a particular trading strategy or investment portfolio. It is often interpreted as a measure of the degree of uncertainty, and thus risk, associated with a particular security or investment portfolio.

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