4. Mutual fund ABC's year-end net asset value (NAV) in the past two years are Year NAV 2020 17.5 2021 18.9 2022 19.5 This mutual fund pays $0.5 dividend per share at the end of every year. (a). Stanley purchased 1000 shares of fund ABC at the end of 2020 and sold the 1000 shares at the end of 2022. What was the Stanley's average annual return over the two years? (b). John purchased 500 shares of fund ABC at the end of 2020, sold 280 shares at the end of 2021 and sold the remaining 220 shares at the end of 2022. What was the John's average annual return over the two years?

4. Mutual fund ABC's year-end net asset value (NAV) in the past two years are Year NAV 2020 17.5 2021 18.9 2022 19.5 This mutual fund pays $0.5 dividend per share at the end of every year. (a). Stanley purchased 1000 shares of fund ABC at the end of 2020 and sold the 1000 shares at the end of 2022. What was the Stanley's average annual return over the two years? (b). John purchased 500 shares of fund ABC at the end of 2020, sold 280 shares at the end of 2021 and sold the remaining 220 shares at the end of 2022. What was the John's average annual return over the two years?

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

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Similar questions

You would like to know how much you need to save and invest monthly to have a $1 million in your investment account in 40 years. The current balance in the investment account is $10,000. You expect to generate an annual rate of return of 6% in a stock portfolio. $115 $447 $340 $105
XYZ's stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End 2019 $ 155 2020 185 2021 145 2022 155 Arithmetic average rate of return Geometric average rate of return An investor buys three shares of XYZ at the beginning of 2019, buys another two shares at the beginning of 2020, sells one share at the beginning of 2021, and sells all four remaining shares at the beginning of 2022. $ 3 3 3 Required: a. What are the arithmetic and geometric average time-weighted rates of return for the investor? (Round your year-by-year rates of return and final answers to 2 decimal places. Do not round other calculations.) % % Dollar-weighted rate of return wwww 3 % b. What is the dollar-weighted rat of return? (Hint. Carefully prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2019, to January 1, 2022. If your calculator cannot calculate IRR, you will have to use trial and error or a spreadsheet…
The Vanguard Windsor II mutual fund had a net asset value of $15.07 at the beginning of 1992 and $24.04 at the beginning of 1997. What was the approximate (rounded up nearest %) average annual growth rate in this measure over this period? A)8% B)60% C)10% D)18% E)15%
An investor receives an 15 percent total return by purchasing a stock and selling it after one year with a 10 percent capital gain. The dividend income during the year is $4. What is the price of the stock currently?
17. Based on the following table, if you invest $15,000 into AAPL stock at the beginning of the period, what would be the dollar value of your investment at the end of the time period? AAPL Date 2/1/2023 13.33% 3/1/2023 -13.99% 4/1/2023 6.53% 5/1/2023 -3.68% 6/1/2023 9.01% 7/1/2023 1.81% 8/1/2023 7.13% 9/1/2023 0.43% 10/1/2023 -2.66% 11/1/2023 5.33% 12/1/2023 4.77% 1/1/2024 12.89% Average Variance St. Dev. A. $15,512 B. $16,154 C. $19,467 D. $21,725 E. $22,831 3.41% 0.005910 7.69%
C.You register a saving plan offering $200,000 at the end of 20 years. The saving plan promises 6% APR (per year). How much do you need to deposit per year in the saving plan? D. You have a preferred stock paying $3 dividend. Its required rate of return is 10%. How much is the preferred stock? (Hint: the value of preferred stock is estimated with PV of perpetuity).
A mutual fund was held by an investor for 575 days and earned a cumulative return of 23.74%. What is the annualized return?
A pension fund has a liability of £65000 to be paid precisely in 4 years time. It wants to Reddington immunise this liability with P 3-year zero coupon bonds and Q 5-year zero coupon bonds, where P and Q are to be determined. Interest is compounded continuously with rate 2%. What is the present value, effective duration and convexity of the liability?
Subject :- Finance
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%
Micro’s irredeemable preference shares are selling for $82.50 each and pay $3.25 in dividends every six months. What is your effective annual expected rate of return if these securities are purchased at the market value?
The nominal rate of return is __% percent earned by an investor in a bond that was purchased for $930, has an annual coupon of 9%, and was sold at the end of the year for $1009? assume the face value of the bond is $1000.

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