A stock initially trades for $80 per share. An investor decides topurchase 1,200 of shares. After 5 years, the portfolio is worth$150,432.00. At that time, the investor decides to purchase an additional70 shares. At the end of year 7, the portfolio is now worth $198,996.30.The investor then decides to sell 50 shares. At the end of year 13, theportfolio is now worth $244,683.20.(a) Find the dollar weighted rate of return.%(b) Find the time weighted rate of return.I

Dear student, kindly check the answer in the explanation box below.Explanation:Part 1: Answer:(a)…

Answered: A stock initially trades for $80 per…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

Assume you purchased the right to sell 2,000 shares of Target stock in February 2022 at a strike price of $240 per share. Suppose Target stock sells for $212 per share immediately before your options’ expiration. What is the rate of return on your investment? What is your rate of return if the stock sells for $268 per share (think about it)? Assume your holding period for this investment is exactly three months. Note: A negaive value should be indicated by a minus sign. Do not round intermediate calculations. Enter your 3-month returns as a percent rounded to 2 decimal places.
The common shares of Twitter, Incorporated (TWTR) recently traded on the NYSE for $75 per share. You have employee stock options to purchase 1,000 TWTR shares for $80 per share. The options expire in three years. Assume that the annualized volatility of TWTR stock is 65 percent and that the Interest rate is 3 percent (Assume the options are European options that may only be exercised at the maturity date.) a. Is this option a call or a put? O Call O Put b. Using an option pricing calculator such as the one at erleri.com/blackscholes, estimate the value of your TWTR options. Note: Round your Intermediate calculations to 2 decimal places and final answer to nearest whole dollar. Value of your TWTR options c. What is the estimated value of the options if their maturity is six months Instead of three years? Note: Round your Intermediate calculations to 2 decimal places and final answer to nearest whole dollar. Value of the options d. What is the estimated value of the options if their…
On January 1, 1997, a stock portfolio is worth $100 thousand. On September 30, 1997, $8.9 thousand is withdrawn from the portfolio, and immediately after this withdrawal the portfolio has a value of $105 thousand. Twelve months later, the value of the portfolio is $108 thousand, and the investor adds $3 thousand worth of stock to his portfolio. On December 31, 1998, the portfolio is worth $100 thousand. Over the two-year period, the annual time-weighted rate of return is X and annual dollar-weighted rate of return is Y. Find |X-Y|
An investor buys shares in a mutual fund for $22. At the end of the year the fund distributes a dividend of $0.52, and after the distribution the net asset value of a share is $24.85. What is the investor's percentage return on the investment? Round your answer to two decimal places. 1
You own 100 shares of stock that are earning $2 per share per year. According to market analysts, the stock is expected to continue to earn $2 long into the future. Using the annuity rule, and assuming an interest rate of 6.5 percent, it follows that the present value of these 100 shares is: Multiple Choice O O O O $30.77. $307.79. $3,076.92. $30,076.92.
You purchased 1,000 shares of a mutual fund at an offer price of $13.88 per share. Several months later you sold the shares for $14.62 per share. During the time you owned the shares, the fund paid a dividend of $0.63 per share. What was your return on investment? Round to the nearest tenth %
You have the following information about your stock portfolio. You own 2 ,000 shares of Stock A which sells for $ 11 with an expected return of 3 %. You own 2,000 shares of Stock B which sells for $10 with an expected return of 6%. You own 4,000 shares of Stock C which sells for $12 with an expected return of 9%. You own 8 ,000 shares of Stock D which sells for $ 16 with an expected return of 15 %. What is the expected return on your portfolio? Show your answer to the nearest .01%.
Two years ago, you purchased 100 shares of General Mills Corporation. Your purchase price was $61 a share, plus a total commission of $38 to purchase the stock. During the last two years, you have received total dividends of $2.48 per share. Also, assume that at the end of two years, you sold your General Mills stock for $66 a share minus a total commission of $36 to sell the stock. Calculate the total return for your investment and the annualized holding period yield. O Total return on the investment: $574. Annualized holding period yield: 4.70%. O Total return on the investment: $674. Annualized holding period yield: 5.52%. O Total return on the investment: $774. Annualized holding period yield: 6.34%. O Total return on the investment: $874. Annualized holding period yield: 7.16%.
The common shares of Twitter, Incorporated (TWTR) recently traded on the NYSE for $69 per share. You have employee stock options to purchase 1,000 TWTR shares for $74 per share. The options expire in three years. Assume that the annualized volatility of TWTR stock is 59 percent and that the interest rate is 2.7 percent. (Assume the options are European options that may only be exercised at the maturity date.) a. Is this option a call or a put? Call ○ Put b. Using an option pricing calculator such as the one at erieri.com/blackscholes, estimate the value of your TWTR options. Note: Round your intermediate calculations to 2 decimal places and final answer to nearest whole dollar. Value of your TWTR options c. What is the estimated value of the options if their maturity is six months instead of three years? Note: Round your intermediate calculations to 2 decimal places and final answer to nearest whole dollar. Value of the options
An investor buys shares in a mutual fund for $22. At the end of the year the fund distributes a dividend of $0.57, and after the distribution the net asset value of a share is $24.04. What is the investor's percentage return on the investment? Round your answer to two decimal places.
In you cash account, you buy 100 shares of XYZ Corporation at a price of $10 per share. Two months later, XYZ pays a dividend $0.21 per share. You sell all 100 shares of XYZ three months later at a price of $12 per share. What is your capital gain on this trade?
An investor buys shares in a mutual fund for $20. At the end of the year the fund distributes a dividend of $0.67, and after the distribution the net asset value of a share is $24.57. What is the investor's percentage return on the investment? Round your answer to two decimal places. %

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS