This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Gary bought a share of stock for 15.75 that paid a dividend of .45 and sold three months later for ... (Read 196 times)

torybrooks

  • Hero Member
  • *****
  • Posts: 500
on: Jul 10, 2018
Gary bought a share of stock for 15.75 that paid a dividend of .45 and sold three months later for 18.65. What was his dollar profit or loss and holding period return?
 
  A) 2.90, 18.41
  B) 3.35, 21.27
  C) -2.90, -18.41
  D) .45, 2.86

Question 2

Assume that the financial markets are in equilibrium. Information on three particular stocks is provided in the table below. Find the risk free rate and the expected return on the market portfolio.
 
  Asset Expected Return Beta
  A 7.6 0.2
  B 12.4 0.8
  C 15.6 1.2
 
  A) 5, 14
  B) 5, 18
  C) 6, 14
  D) 6, 18
  E) 7, 16


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

coyin

  • Sr. Member
  • ****
  • Posts: 334
Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: B
Explanation: B) Profit = Ending Value + Distributions - Original Cost
Profit = 18.65 + 0.45 - 15.75 = 3.35.
HPR = = = 21.27.

Answer to Question 2

C


torybrooks

  • Member
  • Posts: 500
Reply 2 on: Jul 10, 2018
Wow, this really help

AISCAMPING

  • Member
  • Posts: 347
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

Did you know?

Adolescents often feel clumsy during puberty because during this time of development, their hands and feet grow faster than their arms and legs do. The body is therefore out of proportion. One out of five adolescents actually experiences growing pains during this period.

Did you know?

Vampire bats have a natural anticoagulant in their saliva that permits continuous bleeding after they painlessly open a wound with their incisors. This capillary blood does not cause any significant blood loss to their victims.

Did you know?

A serious new warning has been established for pregnant women against taking ACE inhibitors during pregnancy. In the study, the risk of major birth defects in children whose mothers took ACE inhibitors during the first trimester was nearly three times higher than in children whose mothers didn't take ACE inhibitors. Physicians can prescribe alternative medications for pregnant women who have symptoms of high blood pressure.

Did you know?

Pink eye is a term that refers to conjunctivitis, which is inflammation of the thin, clear membrane (conjunctiva) over the white part of the eye (sclera). It may be triggered by a virus, bacteria, or foreign body in the eye. Antibiotic eye drops alleviate bacterial conjunctivitis, and antihistamine allergy pills or eye drops help control allergic conjunctivitis symptoms.

The Kingsley plantation, on Fort George Island in Jacksonville, Florida. Zephaniah Kingsley, the own The Kingsley plantation, on Fort George Island in Jacksonville, Florida. Zephaniah Kingsley, the own
Walter Thompson saw his assets evaporate during the stock market collapse in 1929. Desperate for ... Walter Thompson saw his assets evaporate during the stock market collapse in 1929. Desperate for ...
Parents who grew up in dual-earner families are more apt to share household tasks equally than those ... Parents who grew up in dual-earner families are more apt to share household tasks equally than those ...
Stock Market Question Stock Market Question
A debt payment of $7500 is due in 24 months. If money is worth 7.2% p.a. compounded quarterly, ... A debt payment of $7500 is due in 24 months. If money is worth 7.2% p.a. compounded quarterly, ...
Sabrina's Fabric Land bought $5,000 of equipment at the beginning of 2015. Amortization ... Sabrina's Fabric Land bought $5,000 of equipment at the beginning of 2015. Amortization ...
Video: Deafness Culture

For a complete list of videos, visit our video library