14) sara bought 5000 stocks at a price of 2 USD and her broker asked her...
14) sara bought 5000 stocks at a price of 2 USD and her broker asked her to deposit 6000 USD. sara then sold the stock at 2.5 USD . what is sara's rate of return
Homework Answers
Dollar Return = (2.5 - 2)(5,000) = $2,500
Return Rate = 2,500/6,000
Return Rate = 41.67%
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14) sara bought 5000 stocks at a price of 2 USD and her broker
asked her...
6.Belinda's broker called her recently with an offer to buy Verizon (VZ) common stock for $52...
6.Belinda's broker called her recently with an offer to buy Verizon (VZ) common stock for $52 per share. Her broker promised to repurchase the shares in one year for $56 per share. If Belinda accepts this deal, what is her required return? The stock is not expected to pay a dividend next year. A. 7.14%B. 7.69%C. 10.00%D. 12.50%E. 5.60% 7.Which of the following statements is (are) correct?(x)If the expected rate of return on a stock exceeds the required ratethen the...
Problem 5-14 Price-Weighted Indexes (L04, CFA2) The following three defense stocks are to be combined into...
Problem 5-14 Price-Weighted Indexes (L04, CFA2) The following three defense stocks are to be combined into a stock index in January 2016 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her performance): Price Shares (millions) 530 230 330 1/1/16 $ 62 1/1/18 $ 81 Douglas McDonnell Dynamics General International Rockwell - 34 1/1/17 $ 66 28 52 42 63 68 ces a. Calculate the initial value of the index if a price-weighting scheme is...
12 bought Swedish Meatball Company stock for 35 SWE You sold it for 40 SWF. If...
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Calculate the total rates of return (holding period returns) for the following stocks: Stock Beginning price:...
Calculate the total rates of return (holding period returns)
for the following stocks:
Stock Beginning price: P0 Ending price: P1 Dividend payment:
D1
A 28.38 23.06 2.6
B 110.74 120.92 5.25
C 4.25 5.58 0.24
What was the rate of return for stock A?
What was the rate of return for stock B?
What was the rate of return for stock C?
2. Calculate the total rates of return (holding period returns) for the following stocks: Stock Beginning price: Po...
October 10, 2019 closing price= 47.76 closing price October 31, 2019 is 46.85 september 10, 2019...
October 10, 2019 closing price= 47.76
closing price October 31, 2019 is 46.85
september 10, 2019 stock price is 48.18
13 14 Question 4 - Buying Stocks (Total of 15 Marks) 15 16 17 18 a) Calculate the return you would have earned if you bought 1000 shares of TELUS Corp for cash at the closing price on September 10, 2019 and sold your shares at the closing price on October 31, 2019. Compare with the returns you would have...
2.As a broker at Churnem & Burnem Securities, you recommend stocks toyour clients. After gathering data on Furniture...
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The following three defense stocks are to be combined into a price-weighted stock index in January...
The following three defense stocks are to be combined into a price-weighted stock index in January 2016 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her performance): Suppose that Douglas McDonnell shareholders approve a 3-for-1 stock split on January 1, 2017 and that the company enacts the stock split on January 2, 2017. Price Shares (millions) 1/1/16 1/1/17 1/1/18 Douglas McDonnell 430 $ 108 $ 114 $ 41.08 Dynamics General 535 38 34 48...
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Sara is looking to purchase a washer and dryer. The Saturday newspaper had an advertisement for a local appliance store offering "90 days, same as cashr financing Sara asked how the financing worked and learned that she could pay for the washer and dryer any time during the first 90 days for the purchase price plus sales tax. If she waited longer, she would have to pay the purchase price, plus sales tax, plus 25.8% annual simple interest for the...
7b. Consider three stocks A, B, and C, with closing price at time t being P, and the number of shares time t as Q Stock C splits three-for-one at the beginning of period -2 (before the market opens). 1000 the market opens of shares outstanding at 43 1000 35 56 102 1000 30 5000 67 5000 5000 B 62 C 98 i. What is the return on a price-weighted index of the three stocks for the period r-0 to...
Calculate the total rates of return (holding period returns)
for the following stocks:
Stock Beginning price: P0 Ending price: P1 Dividend payment:
D1
A 28.38 23.06 2.6
B 110.74 120.92 5.25
C 4.25 5.58 0.24
What was the rate of return for stock A?
What was the rate of return for stock B?
What was the rate of return for stock C?
2. Calculate the total rates of return (holding period returns) for the following stocks: Stock Beginning price: Po...
October 10, 2019 closing price= 47.76
closing price October 31, 2019 is 46.85
september 10, 2019 stock price is 48.18
13 14 Question 4 - Buying Stocks (Total of 15 Marks) 15 16 17 18 a) Calculate the return you would have earned if you bought 1000 shares of TELUS Corp for cash at the closing price on September 10, 2019 and sold your shares at the closing price on October 31, 2019. Compare with the returns you would have...
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