Suppose you invest in 100 shares of Harley-Davidson at $40 per share and 220 shares of Yahoo at $25 per share. If the price of Harley-Davidson increases to $50 and the price of Yahoo decreases to $20 per share, what is the return on your portfolio? A. -1.05% O B. 12.25 % O C. -10.50% OD. - 5.20%
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- Suppose you invest in 150 shares of Harley-Davidson (HOG) at $40 per share and 250 shares of Yahoo (YHOO) at $25 per share. If the price of Harley-Davidson increases to $50 and the price of Yahoo decreases to $20 per share, what is the return on your portfolio? OA. 2.04% OB. - 10.50% O C. -5.20% OD. 12.25% CSuppose you invest in 150 shares of Harley - Davidson (HOG) at $40 per share and 250 shares of Yahoo (YHOO) at $25 per share. If the price of Harley Davidson increases to $50 and the price of Yahoo decreases to $ 20 per share, what is the return on your portfolio? A .2.04% B. 10.50% C. - 5.20% D. 12.25%Suppose you invest in 130 shares of Harley-Davidson at $40 per share and 230 shares of Yahoo at $25 per share. If the price of Harley-Davidson increases to $50 and the price of Yahoo decreases to $20 per share, what is the return. on your portfolio? A. B. 10.50% 12.25% O C. 1.37% OD. -5.20%
- Suppose you buy OMR2000 worth of stock on margin. The initial margin is 60% and the maintenance margin is 30%. a. How much have you borrowed? What is your equity? b. Suppose the value of the stock rises by 15% to OMR2300. What is the return on your investment? c. Suppose the value of the stock falls by 15% to OMR1700. What is the return on your investment? d. Does buying a stock on margin increase or decrease your risk of investment? Use the results in parts b and c to answer the question.Suppose you bought XYZ stock 1 year ago for $6.54 per share and sell it at $2.79. You also pay a commission of $0.35 per share on your sale. What is the total return on your investment? The total return is %?Suppose you purchase 2 shares of Canadian Tire Corp. today at $11 per share. At the end of year 1 you receive $1 per share in dividends and you also buy 3 shares at $9 per share. At the end of year 2 you again receive $1 dividend per share and then you sell all your shares at $14 per share. The time-weighted geometric average return on this portfolio is approximately: a.27.1% b.18.9% c.19.5% d.31% e.23.1%
- Suppose you are thinking of purchasing the SunStar’s common stock today. If you expect SunStar to pay $0.80 dividend at the end of year one and $1.6 dividend at the end of year two and you believe that you can sell the stock for $15 at that time. If you required return on this investment is 10%, how much will you be willing to pay for the stock? a. $13.95 b. $14.44 c. 14.19 d. $15.51Answer the multiple-choice question below: 1.If you buy a stock for a price of $23 and if you expect the stock to pay a dividend of $1.242 one year from now and to grow at a constant rate g = 8% in the future, then the required rate of return will be __________. Select one: a.12.4% b.20.4% c.13.4% d.14.5%What return do you expect on a portfolio next year that is currently invested 20% in your stock (with an expected return as computed in c.1) and 80% in an equity mutual fund (which is an investment company that invests into stocks for investors) that has a CAPM expected return of 5.82%? Return in c1= 9.34%
- Your portfolio consists of 100 shares of CSH and 50 shares of EJH, which you just bought at $20 and $30 per share, respectively. a. What fraction of your portfolio is invested in CSH? In EJH? b. If CSH increases to $21 and EJH decreases to $27, what is the return on your portfolio? a. What fraction of your portfolio is invested in CSH? In EJH? The fraction invested in CSH is %. (Round to one decimal place.) The fraction invested in EJH is %. (Round to one decimal place.) b. If CSH increases to $21 and EJH decreases to $27, what is the return on your portfolio? The return on the portfolio is%. (Round to one decimal place.)Suppose you invested $100 in the Ishares High Yield Fund (HYG) a month ago. It paid a dividend of $4 today and then you sold it for $100. What was your dividend yield and capital gains yield on the investment? O A. 3%, 4% OB. 2%, 4% OC. 0%, 4% O D. 4%, 0%Additional Activities Perform what is being asked in the following: 1. What will you pay today for a stock that is expected to make a P 45.00 dividend in one year if the expected dividend rate is 5% and you require a 12% return on your investment? 2. XYZ Company's preferred stock is selling for P 60.00 a share. If the required return is 8%, what will the dividend be two years from now? 3. Your broker is trying to sell you a stock with a current market price of P 2,160.00 The stock's last dividend was P 53.25, and earnings and dividends are expected to increase at a constant growth rate of 10%. Is the stock fairly valued if the return is 13%? Explain why or why not.