Dollar cost averaging - real Wal*Mart example (from a few years ago) You have decided to invest in Wal*Mart stock for an entire year. The stock paid a quarterly divident of $0.30 per share You paid a 2% commission on the purchase of the stock. You invest $150 per month Month WM Stock Price Jan $54.54 Feb $54.30 Mar $53.43 Apr $54.07 May $55.91 Jun $53.64 Jul $50.56 Aug $48.07 Sep $51.19 Oct $51.00 Nov $53.52 Dec $54.00 As you can see, the stock was down about 1% for the year. What was your individual return? Were you better or worse than the market?
Dollar cost averaging - real Wal*Mart example (from a few years ago) You have decided to invest in Wal*Mart stock for an entire year. The stock paid a quarterly divident of $0.30 per share You paid a 2% commission on the purchase of the stock. You invest $150 per month Month WM Stock Price Jan $54.54 Feb $54.30 Mar $53.43 Apr $54.07 May $55.91 Jun $53.64 Jul $50.56 Aug $48.07 Sep $51.19 Oct $51.00 Nov $53.52 Dec $54.00 As you can see, the stock was down about 1% for the year. What was your individual return? Were you better or worse than the market?
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
Related questions
Question
| . Dollar cost averaging - real Wal*Mart example (from a few years ago) | ||||||||||||
| You have decided to invest in Wal*Mart stock for an entire year. The stock paid a quarterly divident of $0.30 per share | ||||||||||||
| You paid a 2% commission on the purchase of the stock. | ||||||||||||
| You invest $150 per month | ||||||||||||
| Month | WM Stock Price | |||||||||||
| Jan | $54.54 | |||||||||||
| Feb | $54.30 | |||||||||||
| Mar | $53.43 | |||||||||||
| Apr | $54.07 | |||||||||||
| May | $55.91 | |||||||||||
| Jun | $53.64 | |||||||||||
| Jul | $50.56 | |||||||||||
| Aug | $48.07 | |||||||||||
| Sep | $51.19 | |||||||||||
| Oct | $51.00 | |||||||||||
| Nov | $53.52 | |||||||||||
| Dec | $54.00 | |||||||||||
| As you can see, the stock was down about 1% for the year. | ||||||||||||
| What was your individual return? | ||||||||||||
| Were you better or worse than the market? | ||||||||||||
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question
| Robert bought shares of 6% $100 face value at a price of $120. Sam bought shares of 8% $20 face value at $30. Whose investment was better? | |||||||||||||
Solution
by Bartleby ExpertKnowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
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