Required: Mr. James K. Silber, an avid international investor, just sold a share of Nestlé, a Swiss firm, for SF5,050. The share was bought for SF4,300 a year ago. The exchange rate is SF1.60 per U.S. dollar now and was SF1.84 per dollar a year ago. Mr. Silber received SF150.00 as a cash dividend immediately before the share was sold. Compute the rate of return on this investment in terms of U.S. dollars. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

Required: Mr. James K. Silber, an avid international investor, just sold a share of Nestlé, a Swiss firm, for SF5,050. The share was bought for SF4,300 a year ago. The exchange rate is SF1.60 per U.S. dollar now and was SF1.84 per dollar a year ago. Mr. Silber received SF150.00 as a cash dividend immediately before the share was sold. Compute the rate of return on this investment in terms of U.S. dollars. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

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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When you bought 300 shares of Tesla at $100/ share and 3 years later it is trading at $150/share and you are still holding onto it, hoping it may still increase in value; So you have not sold it yet in anticipation of the stock price rising even higher, what is your tax liability in year 3 O The difference between where you bought it and where it is currently trading O The $50 gain times the 300 shares you are holding O It depends on what happened in year 2 O None
• X Enterprises has an investment in 25,000 shares of Y Electronics that X accounts for as a security available for sale. Y shares are publicly traded on the New York Stock Exchange, and the Wall Street Journal quotes a price for those shares of $10/share, but X believes the market has not appreciated the full value of the Y shares and that a more accurate price is $12/share. X should carry the Y investment on its balance sheet at: O $300,000. $250,000. O either $250,000 or $300,000, as either are defensible valuations. O $275,000, the midpoint of X's range of reasonably likely valuations of Y.
Use the following information to answer questions 26 to 28 Michael is an investor based in New York He holds 100 shares of Bescherelle, a French firm that went public in March 2015. He bought the shares at €18 per share. At that time, the dollar euro exchange rate was $1.360/€. Now, the share is trading at €25 and the dollar euro exchange rate is $1.410/€. 26. If Michael sells his shares today, what percentage change in the share price would he receive? A. 55.43% B. 40.11% C. 38.89% D. 23.34% E. 15.30% 27. Over this period, by how much has the Euro appreciated/depreciated against the dollar? A. Appreciated by 3.68% B. Depreciated by 3.68% C. Devalued by 3.68% D. Appreciated by 3.54% E. Depreciated by 3.54%
Your eccentric Aunt Claudia has left you $50,000 in BP shares plus $50,000 cash. Unfortunately, her will requires that the BP stock not be sold for one year and the $50,000 cash must be entirely invested in one of the stocks shown below. BHP Billiton BP Siemens Nestlé Sony Sanofi Agricultural Bank Standard deviation, % Agricultural BHP Billiton BP 1.00 Siemens Nestlé Sony Sanofi Bank 0.44 0.21 -0.05 0.21 0.15 0.24 1.00 0.40 0.24 0.27 0.36 0.27 1.00 0.26 0.33 0.29 0.21 1.00 0.34 0.27 -0.06 1.00 0.27 0.35 1.00 0.17 1.00 26.2 22.8 22.5 13.6 27.6 17.5 25.5 a. Calculate the portfolio variance for seven different portfolios. Note: Use decimals, not percents, in your calculations. Do not round intermediate calculations. Enter your answers as a decimal rounded to 5 places. b. What is the safest attainable portfolio under these restrictions? Complete this question by entering your answers in the tabs below. Required A Required B Calculate the portfolio variance for seven different portfolios.…
At the start of the year, you purchased some shares in IBM (a US company) for $US 25.44. The exchange rate at the time of purchase was $US1 = $NZ 1.86. Now the exchange rate is $US1 = $NZ 1.72, while the shares are worth $US 27.91. IBM paid no dividends over the year. What is your ($NZ) holding period return from the start of the year until today? 9.71% 2.18% 1.45% -7.53%
Your eccentric Aunt Claudia has left you $50,000 in BP shares plus $50,000 cash. Unfortunately, her will requires that the BP stock not be sold for one year and the $50,000 cash must be entirely invested in one of the stocks shown below. Toronto Dominion Bank BHP Billiton Siemens Nestlé LVMH Toronto Dominion Bank Samsung BP Standard deviation (%) BHP Billiton 1.00 BHP Siemens Nestlé LVMH Toronto Dominion Bank Samsung BP 28.60 Portfolio Variance Siemens 0.39 1.00 25.40 Nestlé -0.05 0.29 1.00 9.24 LVMH 0.42 0.14 0.04 1.00 20.20 0.60 0.16 0.05 0.38 1.00 11.70 Samsung 0.52 0.36 -0.03 0.56 0.20 1.00 30.50 BP 0.49 -0.07 0.05 0.06 a. Calculate the portfolio variance for seven different portfolios. (Use decimals, not percents, in your calculations. Do not round intermediate calculations. Enter your answers as a decimal rounded to 5 places.) 0.35 0.36 1.00 19.80
A French Investor buys 250 shares of Teck for $18,750 ($75 per share). Over the course of a year, Teck goes up by $8.65. a. If there is a 10 percent gain in the value of the dollar versus the euro, what will be the total percentage return to the French Investor? (Do not round Intermediate calculations. Round the final answer to 2 decimal places.) Total percentage return 1% b. Now assume the stock Increases by $10 but the dollar decreases by 10 percent versus the euro. What will be the total percentage return to the French Investor? (Round your final answer to the nearest whole percentage.) Total percentage return
Required: Mr. James K. Silber, an avid international investor, just sold a share of Néstle, a Swiss firm, for SF5,250. The share was bought for SF4,680 a year ago. The exchange rate is SF2.00 per U.S. dollar now and was SF1.94 per dollar a year ago. Mr. Silber received SF136 as a cash dividend immediately before the share was sold. Suppose that Mr. Silber sold SF4,680, his principal investment amount, forward at the forward exchange rate of SF2.02 per dollar. How would this affect the dollar rate of return on this Swiss stock investment? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Rate of return %
Required: Mr. James K. Silber, an avid international investor, just sold a share of Néstle, a Swiss firm, for SF5,150. The share was bought for SF4,670 a year ago. The exchange rate is SF1.95 per U.S. dollar now and was SF1.92 per dollar a year ago. Mr. Silber received SF134 as a cash dividend immediately before the share was sold. Suppose that Mr. Silber sold SF4,670, his principal investment amount, forward at the forward exchange rate of SF1.97 per dollar. How would this affect the dollar rate of return on this Swiss stock investment? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Rate of return %

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