Homework Answers
| Calculation of Expected Return on the Stock | ||||
| Particulars | Market Price | Profit | Expected Return | Rank |
| $1,400 | $52 | 3.714 | 6 | |
| Amazon | $2,400 | $30 | 1.250 | 8 |
| $213 | $19 | 8.920 | 3 | |
| Netflix | $440 | $21 | 4.773 | 5 |
| T- Mobile | $97 | $8 | 8.247 | 4 |
| AT & T | $29 | $5 | 17.241 | 2 |
| Disney | $108 | $20 | 18.519 | 1 |
| Tesla | $811 | $29 | 3.576 | 7 |
| Optimum portfolio according to the investor preferences | ||||||
| Investor | Amount | Investor Preference | Explanation | Decision | Market price | No.of Shares can be bought |
| Adam | $50,000 | Google, Facebook, Amazon | Among Google, F.B, Amazon , F.B has the highest expected return | $213 | 234.741784 | |
| Bill | $80,000 | Atleast 50 shares of Disney and Rest can be allocated to AT & T, T-Moble & Netflix | Among all the stocks , Disney has higher expected return. It is wise to choose Disney | Disney | $108 | 740.7407407 |
| Cindy | $65,000 | Google & Amazon | Among Google & Amazon, Google is yielding higher return | $1,400 | 46.42857143 | |
| Dianna | $90,000 | Open to invest in any companies | Among all the stocks , Disney has higher expected return. It is wise to choose Disney | Disney | $108 | 833.3333333 |
| Elaine | $60,000 | Open to invest in any companies except Disney | Among all the stocks , Disney has higher expected return. It is wise to choose Disney. But the investor does not wany to choose Disney, so the next best alternative which is giving the highest return is AT & T | AT & T | $29 | 2068.965517 |
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Rose Corporation has a stock purchase plan with the following provision. Each full-time employee with a minimum of one year's service may acquire from Rose Corporation, its common stock, $10 par, through payroll deductions at 5% below the market price on the date selected by the employee for a stock purchase (the exercise date). The exercise decision must be made within one year from the payroll deduction date. Employee Deeter signed a payroll deduction agreement form on January 1, 2020,...
ch. 16.1 #3 Assume that Amazon.com has a stock-option plan for top management. Each stock option...
ch. 16.1 #3
Assume that Amazon.com has a stock-option plan for top management. Each stock option represents the right to purchase a share of Amazon $1 par value common stock in the future at a price equal to the fair value of the stock at the date of the grant. Amazon has 4,400 stock options outstanding, which were granted at the beginning of 2020. The following data relate to the option grant. Exercise price for options Market price at grant...
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Problem 16-4 Assume that Amazon.com has a stock-option plan for top management. Each stock option represents...
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2. A financial adviser has a new client and is helping him to diversity his stock...
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a) Does the reported fund’s return include the Management
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b) What type of fee is charged: No-load, Front-end load or a
Back-end load?
c) Is the status of this mutual fund classified as a closed-end
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d) Based on your response in c), explain...
Hello again! These are the other half of my homework,I'd be very happy if you could help me out of these!
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Rose Corporation has a stock purchase plan with the following provision. Each full-time employee with a minimum of one year's service may acquire from Rose Corporation, its common stock, $10 par, through payroll deductions at 5% below the market price on the date selected by the employee for a stock purchase (the exercise date). The exercise decision must be made within one year from the payroll deduction date. Employee Deeter signed a payroll deduction agreement form on January 1, 2020,...
ch. 16.1 #3
Assume that Amazon.com has a stock-option plan for top management. Each stock option represents the right to purchase a share of Amazon $1 par value common stock in the future at a price equal to the fair value of the stock at the date of the grant. Amazon has 4,400 stock options outstanding, which were granted at the beginning of 2020. The following data relate to the option grant. Exercise price for options Market price at grant...
11.2 Russ Alonzo Takes Stock of His Securities Russ Alonzo is 42 years old, single, and works as a designer for a major architectural firm. He is well paid and has built up a sizable portfolio of investments. He considers himself an aggressive investor and, because he has no dependents to worry about, likes to invest in high-risk/high-return securities. His records show the following information. 1. In 2006, Russ bought 200 shares of eBay (NASDAQ: symbol EBAY) at $29.77 a...
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help pls
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b) What type of fee is charged: No-load, Front-end load or a
Back-end load?
c) Is the status of this mutual fund classified as a closed-end
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