QUESTION 6 6.25 points Save As Suppose you bought a stock January 1, 2015 for $85,...

Question

Question

Answer 1

Answer #1

The period of holding is 3 months

The Annualized Holding Period = (98/85)⁴-1 = 0.7670

Option b is correct.

Please Discuss in case of Doubt

Best of Luck. God Bless
Please Rate Well

Answer 2

Similar Homework Help Questions

QUESTION 10 6.25 points Save Answer BC stock for $30/share four months ago. How much were...

QUESTION 10 6.25 points Save Answer BC stock for $30/share four months ago. How much were you able to You purchased A sell yourstock for today if your annualized holding period yield is-15%? Round intermediate steps to four decimals and your final answer to two decimals. Do not use the dollar sign when inputting your answer. 6.25 points Save Answe QUESTION 11 Inflation has no bearing on the real risk-free rate. n True False
QUESTION 16 6.25 points Save Answer Suppose that you purchased 1,000 shares of stock for $45/share...

QUESTION 16 6.25 points Save Answer Suppose that you purchased 1,000 shares of stock for $45/share three months ago. Find your geometric mean return if you sell all your shares today for $38/share. .0548 .4915 O- 1556 O-3978
QUESTION 14 6.25 points Save Answer ABC stock has the following probability distribution and expected year-end...

QUESTION 14 6.25 points Save Answer ABC stock has the following probability distribution and expected year-end prices: State Probability 25 4 35 Year-end Price $50 $60 $70 2 If you purchase the stock today for $55/share and you expect it to pay a dividend of $4/share, what is you expected holding period yield over the course of the year? Hint: If dividends are paid, HPY- [(ending price+dividends)/beginning price]-1 0.1818 O.1091 O-.0328 O0984

QUESTION 13 6.25 points S Assume that you hold a two stock portfolio. Use the following...

QUESTION 13 6.25 points S Assume that you hold a two stock portfolio. Use the following table to calculate the Price 24 annualized HPY of your portfolic. Initial Price Stock Weight 1/1/20131/1/2017 75 25 18 110 116 O.0287 0.0593 O.3053 1242 0689
Question 8: You bought 1000 shares of Huawei's stock at $32.20 per share 4 years ago...

Question 8: You bought 1000 shares of Huawei's stock at $32.20 per share 4 years ago and now you decided to sell it to travel to Europe this summer holiday. Now the market price of the stock is $59.70. What are the (1) holding period return, (2) average annual return, and (3) the annualized rate of return?
(UPS Battery) On January 1, 2015, you bought a backup battery for your office uninterruptible power supply (UPS) sy...

(UPS Battery) On January 1, 2015, you bought a backup battery for your office uninterruptible power supply (UPS) system. In each of the next three years, the battery can fail and a new battery needs to be bought (if you want to keep using the UPS system). The maximum lifespan of the battery is four years; i.e., the battery must be replaced after four years. Due to chemical properties, the probability of the battery failure is fixed at 20% in...

1. (10 points) You sold a stock for $50 that you purchased five years earlier for...

1. (10 points) You sold a stock for $50 that you purchased five years earlier for $24. The stock paid no dividends. What was the holding period return (HPR)? What was the annualized, compound return?
QUESTION 8 6.25 points Save Answer The value of financial assets is positively related to the...

QUESTION 8 6.25 points Save Answer The value of financial assets is positively related to the required rate of return. O True False 6.25 points Save Answer QUESTION 9 A year ago, you invested $1,000 in a savings account that pays an annual interest rate of 7%. What is your approximate annual real rate of return if the rate of inflation was 3% over the year? 0.04 O.10 o.07 o.06
6.25 points Save Answer QUESTION 8 The value of financial assets is positively related to the...

6.25 points Save Answer QUESTION 8 The value of financial assets is positively related to the required rate of return. O True O False 6.25 points Save Answer QUESTION 9 A year ago, you invested $1,000 in a savings account that pays an annual interest rate of 7%. What is your approximate annual real rate of return if the rate of inflation was 3% over the year? .04 0.10 0.06

QUESTION 7: You bought 250 shares of McWeber Inc. stock on margin. Price paid was $75...

QUESTION 7: You bought 250 shares of McWeber Inc. stock on margin. Price paid was $75 per share. The initial margin is 60%. The maintenance margin is 25%. A. What is the initial equity per share? (2 points) B. What is the loan amount per share? (2 points) C. How low can the price fall before there is a margin call? (2 points) D. Assume the price falls to $36. What is the amount of the margin call? (3 points)...