Foundations Of Finance
Foundations Of Finance
10th Edition
ISBN: 9780134897264
Author: KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher: Pearson,
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Chapter 6, Problem 12SP
Summary Introduction

To determine: The holding period dollar gain.

Summary Introduction

To determine: The holding period return.

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A stock is bought for $23.25 and sold for $28.69 a year later, immediately after it has paid a dividend of $4.18. What is the capital gain rate for this transaction?  NOTE: Enter the PERCENTAGE number rounding to two decimals. If your decimal answer is 0.034576, your answer must be 3.46. DO NOT USE the % sign.   A stock is bought for $29.45 and sold for $35.96 a year later, immediately after it has paid a dividend of $3.97. What is the dividend yield for this transaction?  NOTE: Enter the PERCENTAGE number rounding to two decimals. If your decimal answer is 0.034576, your answer must be 3.46. DO NOT USE the % sign.   You own a portfolio that has $3,764 invested in Stock A and $7,514 invested in Stock B. If the expected returns on these stocks are 9.33% and 11.67%, respectively, what is the expected return on the portfolio? NOTE: Enter the PERCENTAGE number rounding to two decimals. If your decimal answer is 0.034576, your answer must be 3.46. DO NOT USE the % sign.
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