Share price at the beginning of the year $20 $15 Share price at the end of the year $26 $18 Dividends received during the year $5 $2 Average Co-efficient of variation over the last three years 0.480 0.251 Total number of shares owned 10 000 5 000 Required: Calculate the return on investment per share for each investment. Calculate the total return earned the year for this entire shareholding of each company. Show the realised and unrealised portion of this total return. Explain how to use the co-efficient of variation in this investment decision. What share investment is recommended
Share price at the beginning of the year $20 $15 Share price at the end of the year $26 $18 Dividends received during the year $5 $2 Average Co-efficient of variation over the last three years 0.480 0.251 Total number of shares owned 10 000 5 000 Required: Calculate the return on investment per share for each investment. Calculate the total return earned the year for this entire shareholding of each company. Show the realised and unrealised portion of this total return. Explain how to use the co-efficient of variation in this investment decision. What share investment is recommended
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
|
JM Computers |
Joseph's Transport |
|
Share price at the beginning of the year |
$20 |
$15 |
|
Share price at the end of the year |
$26 |
$18 |
|
Dividends received during the year |
$5 |
$2 |
|
Average Co-efficient of variation over the last three years |
0.480 |
0.251 |
|
Total number of shares owned |
10 000 |
5 000 |
|
Required:
- Calculate the
return on investment per share for each investment. - Calculate the total return earned the year for this entire shareholding of each company. Show the realised and unrealised portion of this total return.
- Explain how to use the co-efficient of variation in this investment decision.
- What share investment is recommended
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