(b)Mr Ariff is considering investing in two shares, X and Y. The following cashflow for both share:End of yearInvestment (RM)Y15,00015,00015,00015,000Assuming a 20 percent interest rate, calculate the future value eachinvestment and recommend the best alternatives for Mr Ariff to select.15,00018,00017,00017,0001234

Annual interest rate = 20% Calculation of future value of investment X Year Cash flow Future…

Answered: (b) Mr Ariff is considering investing…

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

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O b. Equity. O c. Fixed income payments. O d. Security. Clear my choice Zinedine Zidane purchased 100 shares of Real Madrid common stock at $40 per share. Assume that the initial margin is 55% and the maintenance margin equals 25%. At which of these prices will Zidane face a margin call? O a. $29.3 Ob. $40 Q C. $24 O d. $15 近

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
11. For which of the following clients would a mutual fund C share be most suitable? Assume that breakpoints kick in at $25,000. a. Jordan, who has $15,000 to invest now and intends to maintain her account for at least 5 years. b. Thelma, who has $20,000 to invest now and intents to add $5,000 to the account by the end of the each of the next three years c. Mary, who has $35,000 to invest and intends to maintain her fund for at least five years d. Mike, who has $5,000 to invest now, will add an additional $5,000 in six months, but doesn't intend to maintain his investment for much more than a year
Bill buys $500 worth of the T-bill. O Bill invests $1000 in the risky portfolio. Bill borrows $250 at the risk free rate. QUESTION 13 portroll Which of the following statements is correct? O All portfolios on the capital allocation line have the same Sharpe ratios O Short selling the risk-free asset is equivalent to lending money at the risk free rate O In a portfolio, asset weights must sum up to 0 O the capital allocation line is downward sloping QUESTION 14
An investor purchases a share for £6.89 at the beginning of the year. Six months later, the investor receives a dividend of £0.08 (net of tax) and immediately sells the share for £7.26. Capital gains tax of 30% is paid on the difference between the sale and the purchase price. Calculate the net annual effective rate of return the investor obtains on the investment. 数字 Enter a percentage correct to 2 decimal places %
The investment funds for your company includes the following: Stock $ Amount Invested Beta for Each Stock A $ 600,000 .8 B $ 1,800,000 1.4 C $ 2,400,000 1.7 D $ 700,000 -.6 E $ 3,000,000 1.1 You need to calculate the required rate of return for the investment. The market’s required return for Year 2020 is 12% and the risk free rate is 3% Show your work on the following: Calculate the average beta for the portfolio. Calculate the required rate of return for the entire portfolio. The CFO of your company is anticipating that the stock market will be decreasing in the near future. Please give a recommendation on which stock the company should sell and which stock the company should buy. The CFO also wants you to explain your answer.
2. An investor is evaluating a two-asset portfolio of the following two securities. Portfolio A: 75% Ooredoo and 25% Woqod Portfolio B: Investor has QAR 100,000 and will invest QAR 50,000 in Woqod Expected returns and risks: ● ● ● ● Expected Return 12.50% Woqod 10.80% The correlation between Ooredoo and Woqod is 0.72. Calculate: a. Expected return of both the portfolios Security Ooredoo Expected Risk (0) 26.40% 22.50%
i need the answer quickly
Future value (with changing interest rates). Jose has $3,000 to invest for a 6-year period. He is looking at four different investment choices. What will be the value of his investment at the end of 6 years for each of the following potential investments? a. Bank CD at 3%. b. Bond fund at 7.5%. c. Mutual stock fund at 14%. d. New venture stock at 21%. a. What will be the value of Jose's bank CD investment that offers an annual rate of return of 3% for 6 years? (Round to the nearest cent.) $
You are considering acquiring a common share of Sahali Shopping Center Corporation that you would like to hold for 1 year. You expect to receive both if you $1.20 in dividends and $30 from the sale of the share at the end of the year. The maximum price you would pay for a share today is wanted to earn a 12% return. Multiple Choice O O O $26.79 $27.86 $27.46 $35.45
Bha
1. Suppose Josh gets a $7500 gift from his family on graduation & wants to buy securities with this. He talks to his broker who informs him that the initial (minimum) margin requirement to be 25%. He, however, decides to use his entire gift to buy only 150 shares in HSBC at an initial price of $100 each. (a) What is the initial percentage Margin on Josh's account? (b) If R is Josh's portfolio return, and R= A.RHSBC, where RHSBC is HSBC's return, what is A? (c) If HSBC's beta is 0.975, what is the beta of Josh's portfolio?

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