Consider the following information pertaining to a stock for the last few years:Year2016-172017-182018-192019-202020-21DPS (Rs.)18.5131516179102021-2220Share4666048738701336Price(Rs.)Determine1. Dividend yield, capital gain yield, total return for each period2. Average return, variance and standard deviation
Question
Consider the following information pertaining to a stock for the last few years:Year2016-172017-182018-192019-202020-21DPS (Rs.)18.5131516179102021-2220Share4666048738701336Price(Rs.)Determine1. Dividend yield, capital gain yield, total return for each period2. Average return, variance and standard deviation
Solution
To calculate the dividend yield, capital gain yield, and total return for each period, we need to follow these steps:
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Dividend Yield: It is calculated by dividing the dividend per share (DPS) by the price per share and then multiplying by 100 to get the percentage. The formula is: Dividend Yield = (DPS / Price per share) * 100
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Capital Gain Yield: It is calculated by subtracting the initial price of the stock from the final price, dividing by the initial price, and then multiplying by 100 to get the percentage. The formula is: Capital Gain Yield = ((Final Price - Initial Price) / Initial Price) * 100
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Total Return: It is the sum of the dividend yield and the capital gain yield. The formula is: Total Return = Dividend Yield + Capital Gain Yield
However, in your question, the price of the stock for each year is not provided, so we cannot calculate these values.
For the second part of your question:
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Average Return: It is the sum of the returns for each period divided by the number of periods.
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Variance: It is the average of the squared differences from the mean.
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Standard Deviation: It is the square root of the variance.
Again, without the price of the stock for each year, we cannot calculate these values.
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