topic 5A/B risk and return Flashcards

1
Q

how to calculate DIVIDEND YIELD

A

Expected dividend to pay / initial share price

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2
Q

how to calculate CAPITAL GAINS YIELD

A

Beg - end price / beg price

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3
Q

how to calculate PERCENTAGE RETURN

A

dividend paid + change in market value / beginning market value

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4
Q

how to calculate Expected dollar return

A

(expected price - current price ) + dividend

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5
Q

TOPIC 5B

A

boo

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6
Q

calculate CAPM

A

risk free rate + Beta X (risk free premium)

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7
Q

calculate EXPECTED RETURN

A

risk free rate + BETA x (expceted return of market - risk free rate)

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8
Q

calculate BETA

A

expected rate of return - risk free rate / expected market return - risk free

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