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Old price 83New price 91Dividend 1.4

Return 0.113253

1) Return = ((New price-Old price)+Dividend)/ Old pri

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Old price 83New price 91Dividend 1.4

Dividend yield 0.016867

Capital gains yield 0.096386

1) Dividend Yield = Dividend / Old Price

2) Capital gains yield = (New price-Old price)/ Old

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price

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Old price 83New price 76Dividend 1.4

Return -0.06747

Dividend yield 0.016867

Capital gains yield -0.08434

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Return 44

% Return 0.039286

Real return 0.009015

1) Absolute Return = Market price - cost price + int

2) % Return = Interest received / cost price

3) Fisher's equation : (1 + R) = (1 + r)(1 + h)real return = % return / inflation -1

where,h = inflationR = % return

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rest received

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% return of US govt bonds 1.058% return of US corporate bonds 1.062Inflation rate 1.031

Real return of GB 0.026188Real return of CB 0.030068

1) Data not given intaken from the inter

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ook. Data shown in master solutions PDF apparentlynet.

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Year X Y1 0.11 0.362 0.06 -0.073 -0.08 0.214 0.28 -0.125 0.13 0.43

Average Returns 0.1 0.162Variance 0.01685 0.06167Standard Deviation 0.129808 0.248334

1) Note: Unlike what Aarti said, VAanswer in this case.

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R.P and VAR.S, and STDEV.P and STDEV.S did not yield the same

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Year Large co. stock returns T-bill returns Risk Premium1973 -0.1469 0.0729 -0.21981974 -0.2647 0.0799 -0.34461975 0.3723 0.0587 0.31361976 0.2393 0.0507 0.18861977 -0.0716 0.0545 -0.1261

1978 0.0657 0.0764 -0.0107

Returns 0.03235 0.06552 -0.03317Standard Deviation 0.241114659 0.012387157 0.249155234

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New price 163.508

Return 0.073098 1) Assumed to be a deep-discount bond of facev

2) New price = Face value/rate^no. of years

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ue Rs.1000.

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Return 0.0136711) Return = (Market price - cost pric

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+ dividend) / cost price

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Return 0.087192755

APR (Annual Precentage Rate) 0.348771022

EAR (Effective Annual Rate) 0.397095839

1) APR is simple interes

2) EAR is compound int

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t rate.

erest rate.

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Blume's Formula

R5 0.125103R10 0.121483R20 0.114241

1) Blume's Formula:

((Number of years - 1)/Number of years' data-1 )*of years' data- Number of years)/ Number of year

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Rate 1 + ((Numbers' data-1* Rate 2

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New price:

PV of yearly interest payments 381.32PV of principal on maturity 666.34222New price 1,047.67

Return 0.0964

Real return 0.0461999