Carlos purchased 2,000 shares of a common stock last June 2017 for Php 3,200,000. In June 2018, he then sold 1,000 shares of the common stock for Php 1,800 per share. The remaining 1,000 shares were finally sold for Php 2,000 per share in June 2019. What was the ERR on this investment if the external reinvestment rate is 8% per year? Write also the complete given.
Carlos purchased 2,000 shares of a common stock last June 2017 for Php 3,200,000. In June 2018, he then sold 1,000 shares of the common stock for Php 1,800 per share. The remaining 1,000 shares were finally sold for Php 2,000 per share in June 2019. What was the ERR on this investment if the external reinvestment rate is 8% per year? Write also the complete given.
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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Carlos purchased 2,000 shares of a common stock last June 2017 for Php 3,200,000. In June 2018, he then sold 1,000 shares of the common stock for Php 1,800 per share. The remaining 1,000 shares were finally sold for Php 2,000 per share in June 2019.
What was the ERR on this investment if the external reinvestment rate is 8% per year? Write also the complete given.
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