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
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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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