(Calculating rates of return) The S&P stock index represents a portfolio comprised of 500 large publicly traded companies. On December 24, 2007, the index had a value of 1,410 and on December 24, 2008, the index was approximately 852. If the average dividend paid on the stocks in the index is approximately 3.5 percent of the value of the index at the beginning of the year, what is the rate of return earned on the S&P index? What is your assessment of the relative riskiness of investing in a single stock such as Google compared to investing in the S&P index (recall from Chapter 2 that you can purchase mutual funds that mimic the returns of the index)? The rate of return earned on the S&P 500 is%. (Round to two decimal places.)
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- (Calculating rates of return) The S&P stock index represents a portfolio comprised of 500 large publicly traded companies. On December 24, 2007, the index had a value of 1,410 and on December 24, 2008, the index was approximately 926. If the average dividend paid on the stocks in the index is approximately 4.0 percent of the value of the index at the beginning of the year, what is the rate of return earned on the S&P index? What is your assessment of the relative riskiness of investing in a single stock such as Google compared to investing in the S&P index (recall from Chapter 2 that you can purchase mutual funds that mimic the returns of the index)? Question content area bottom Part 1 The rate of return earned on the S&P 500 is enter your response here%. (Round to two decimal places.)(Calculating rates of return) The S&P stock index represents a portfolio comprised of 500 large publicly traded companies. On December 24, 2007, the index had a value of 1,410 and on December 24, 2008, the index was approximately 913. If the average dividend paid on the stocks in the index is approximately 5.0 percent of the value of the index at the beginning of the year, what is the rate of return earned on the S&P index? What is your assessment of the relative riskiness of investing in a single stock such as Google compared to investing in the S&P index (recall from Chapter 2 that you can purchase mutual funds that mimic the returns of the index)? CITE The rate of return earned on the S&P 500 is%. (Round to two decimal places.)(Calculating rates of return) The S&P stock index represents a portfolio comprised of 500 large publicly traded companies. On December 24, 2007, the index had a value of 1,410 and on December 24, 2008, the index was approximately 921. If the average dividend paid on the stocks in the index is approximately 4.0 percent of the value of the index at the beginning of the year, what is the rate of retum eamed on the S&P index? What is your assessment of the relative riskiness of investing in a single stock such as Google compared to investing in the S&P index (recall from Chapter 2 that you can purchase mutual funds that mimic the returns of the index)? KIYD The rate of return earned on the S&P 500 is % (Round to two decimal places.)
- (Calculating rates of return) The S&P stock index represents a portfolio comprised of 500 large publicly traded companies. On December 24, 2007, the index had a value of 1.410 and on December 24, 2008, the index was approximately 896. the average dividend paid on the stocks in the index is approximately 5.0 percent of the value of the index at the beginning of the year what is the rate of return eamed on the S&P index? What is your assessment of the relative riskiness of investing in a single stock such as Google compared to investing in the S&P index (recall from Chapter 2 that you can purchase mutual funds that mimic the retums of the index)? The rate of retum eamed on the S&P 500 is (Round to two decimal places) CITESThe S&P stock index represents a portfolio comprised of 500 large publicly traded companies. On December 24, 2007, the index had a value of 1,410 and on December 24, 2008, the index was approximately 927. If the average dividend paid on the stocks in the index is approximately 5.0 percent of the value of the index at the beginning of the year, what is the rate of return earned on the S&P index? What is your assessment of the relative riskiness of investing in a single stock such as Google compared to investing in the S&P index (recall from Chapter 2 that you can purchase mutual funds that mimic the returns of the index)? Question content area bottom Part 1 The rate of return earned on the S&P 500 is enter your response here %. (Round to two decimal places.) Part 2 What is your assessment of the relative riskiness of investing in a single stock, such as Google, compared to investing in the S&P index? (Select the best choice…The S&P 500 Index represents a portfolio comprised of 500 large publicly traded companies. A year ago the index had a value of $4,677, and today the index has a value of $3,824. If the average dividend paid on stocks is 4% of the value of the index at the start of the year, what is the rate of return on the index? a. 18.24% gain b.14.24% gain c.14.24% loss d. 18.24% loss a.. b.. C. . O d..
- In the year 2010, the average firm in the S&P 500 Index had a total market value of five times stockholders’ equity (book value). Assume a firm had total assets of $10 million, total debt of $6 million, and net income of $600,000. What is the percent return on total market value?In the year 2010, the average firm in the S&P 500 Index had a total market value of five times stockholders’ equity (book value). Assume a firm had total assets of $10 million, total debt of $6 million, and net income of $600,000. What is the percent return on equity?Assume these are the stock market and Treasury bill returns for a 5-year period: Year Stock Market Return (%) T-Bill Return (%) 2013 35.90 0.21 2014 15.20 0.21 2015 -5.10 0.21 2016 16.90 0.08 2017 25.90 0.10 a. What was the risk premium on common stock in each year? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Year Risk Premium 2013 % 2014 % 2015 % 2016 % 2017 % b. What was the average risk premium? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) c. What was the standard deviation of the risk premium? (Ignore that the estimation is from a sample of data.) (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
- During the period 2006–2016, earnings of the S&P 500 Index companies have increased at an average rate of 6.00 percent per year and the dividends paid have increased at an average rate of 2.00 percent per year. Assume that: Dividends will continue to grow at the 2006–2016 rate. The required return on the index is 10 percent. Companies in the S&P 500 Index collectively paid $397.2 billion in dividends in 2016. Estimate the aggregate value of the S&P 500 Index component companies at the beginning of 2017 using the Gordon growth model.The dividend of a stock is expected to be $3.3/share in this period. The current price of the stock is $66.2/share. Its price is expected to be $69.8/share at the end of the period. The expected return rate of the stock in this period is %. (Hints/Example]Based on the following stock price and shares outstanding information, compute the beginning and ending values for a price-weighted index and a market-value-weighted index. December 31, 2018 December 31, 2019 Price Shares Shares Outstanding Price Outstanding Stock K 20 100,000 32 100,000 Stock M 80 2,000 45 4,000* Stock R 40 25,000 42 25,000*Stock split two-for-one during the year. Base index 100a. Compute the percentage change in the value of each index and the new during the year b.…