topic 5A/B risk and return Flashcards
1
Q
how to calculate DIVIDEND YIELD
A
Expected dividend to pay / initial share price
2
Q
how to calculate CAPITAL GAINS YIELD
A
Beg - end price / beg price
3
Q
how to calculate PERCENTAGE RETURN
A
dividend paid + change in market value / beginning market value
4
Q
how to calculate Expected dollar return
A
(expected price - current price ) + dividend
5
Q
TOPIC 5B
A
boo
6
Q
calculate CAPM
A
risk free rate + Beta X (risk free premium)
7
Q
calculate EXPECTED RETURN
A
risk free rate + BETA x (expceted return of market - risk free rate)
8
Q
calculate BETA
A
expected rate of return - risk free rate / expected market return - risk free