Zachary purchased BBC stock expecting the price to rise 15% in the coming year. After one year, BBC stock has actually moved up by 30%, due primarily to new information released during the year concerning unexpectedly higher sales. Which of the following describes this result?

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
icon
Related questions
Question

23-

Zachary purchased BBC stock expecting the price to rise 15% in the coming year.

After one year, BBC stock has actually moved up by 30%, due primarily to new information released during the year concerning unexpectedly higher sales.

Which of the following describes this result?

 

Group of answer choices
This is a violation of weak-form efficiency
This is not a violation of weak-form efficiency
This is a violation of semi-strong form efficiency
This is not a violation of semi-strong form efficiency
26-

Talal acquired 1,200 shares of CRAZY SPORTS stock at a price of $40 per share.

Exactly one year later, he sold the shares for $43 per share. In addition, CRAZY SPORT paid a quarterly dividend of $0.50 per share at the end of each quarter.

What is the percent capital gain/loss for the investment?

 

Group of answer choices
15.0%
12.50%
7.50%
5.0%
Expert Solution
steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Investment in Stocks
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.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
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…
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