(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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This Question: 1 pt 2 of 30 (14 complete) his Test: 30 pts p... A stock is bought for $21.00 and sold for $27.50 one year later, immediately after it has paid a dividend of $1.50. What is the capital gain rate for this transaction? O A. 15.48% O B. 30.95% O C. 6.19% O D. 24.76% Click to select your answer. Mach 20 F3 D00 D00 FA esc F2 24
Please be aware answer A is not correct. Therefore only B,C OR d MAY BE THE CORRECT AWNSER
You have $150,000 invested in three stocks as follows: Stock Investment Stock's Beta SYK $50,000 1.9 ISRG $50,000 1.2 YUM $50,000 (a) What is the beta value of your portfolio? (b) You desire a portfolio of 1.15 and will achieve this by selling $25,000 of ISRG and an additional amount SYK, with the proceeds of both sales to purchase YUM. What dollar amount of SYK should you sell? What dollar amount of YUM will you purchase? 0.9
Suppose that, as a fund manager, you purchase 5,000 shares of Company X on 1 January 2019 for $10 each in order to keep and earn dividends. Simultaneously, you also purchase 4,000 shares of Company Y for $7.5 each for trading purposes. The share price of Company X increases to $12 first, but after some days it drops to $11.2 and you immediately sell 3,000 shares. On the other hand, the share price of Company Y drops to $7 first, but after some days it increases to $7.6 and you immediately sell 2,500 shares. (Note that, funds make valuation on a daily basis) Assuming that there are no more price movements throughout the year, what would be the total comprehensive income as of the year end? A) $2,400B) $4,000C) $6,400D) $7,100E) Other (Please Specify)
You have the following share price of XYZ. DATE Price 2-Mar-2021 $100 3-Mar-2021 $60 4-Mar-2021 $40 5-Mar-2021 $100 Investor B bought 100 shares of XYZ on 2-Mar-2021 and sold all the shares on 5-Mar-2021. Which answer is the closest value to the arithmetic average rate of return for the investor? A. 20% B. 15% C. 25% D. 0%
Try Yourself - Question 2 Six years ago, I bought 200 shares of Disney at $26 per share. The stock had a 2:1 split followed by a 3:1 split. It now trades for $7.34 per share. What is the rate of return on my investment? A. The rate of return on my investment is 9.18% B. The rate of return on my investment is 4.11% C. The rate of return on my investment is 3.23% D. The rate of return on my investment is 9.09% E. The rate of return on my investment is 5.15%
An investor buys Go-Go Mutual Fund on January 1 at a net asset value of GHS21.20. At the end of the year, the price is GHS25.40. Also, the investor receives GHS0.50 in dividends and GHS0.35 in capital gains distributions. What is the total percent return on the beginning net asset value?
Mr Aleem bough some stocks of urnas Itd for $500 each. At the end of year, he got $5 per share as dividend and then he sold the shares at $605 each. What will be the returns on his investment?? ● 19% ●22% 20% 21%
4. Risk aversion Suppose an investor, Erik, is offered the investment opportunities described in the table below. Each investment costs $1,000 today and provides a payoff, also described below, one year from now. Option Payoff One Year from Now 1 100% chance of receiving $1,100 2. 50% chance of receiving $1,000 50% chance of receiving $1,200 3 50% chance of receiving $200 50% chance of receiving $2,000 If Erik is risk averse, which investment will he prefer? O The investor will choose option 1. O The investor will choose option 2. O The investor will choose option 3. O The investor will be indifferent toward these options. In contrast to his brother Erik, Devin is a risk lover (or exhibits risk seeking behavior). Which of the following statements is true about Devin? O Everything else remaining constant, Devin will prefer option 3. O Everything else remaining constant, Devin will prefer option 2. O Everything else remaining constant, Devin will prefer option 1. O None of these options…
Question 6 Answer parts a), b) and c) based on the information below: Kasandra has purchased 1,000 shares in ABC Ltd for $40 each. Her analysis suggests that the following four states of the economy with respective probabilities can affect the price of the share next year. She also expects to receive a dividend of $2 per share next year. States of economy Probability Price Boom 10% $50 Good 30% $48 Normal 40% $42 Recession 20% $30 a) For each scenario above, calculate the total holding period return for Kasandra. Calculate the expected return from this investment considering all scenarios. Round your answer to the nearest 0.01%. b) Calculate the total risk of this investment. Round your answer to the nearest 0.01%. /
There are two investment options available for you. The first option requires you to invest 5,000$ in 1 year with 7% interest rate and collect your return in year 27. Second option requires you to put 500$ today with 11% interest rate and collect the fund in year 65. What is the compounding effect combination of these two investments? Select one: a.470,570 b.410,795 C.490,510 d.465,070
Suppose you invest $27,500 by purchasing 200 shares of Abbott Labs (ABT) at $65 per share, 200 shares of Lowes (LOW) at $45 per share, and 100 shares of Ball Corporation (BLL) at $55 per share. The weight of Abbott Labs in your portfolio is: ..... A. 37.82% В. 47.27% С. 28.36% D. 18.91%

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