An investor’s portfolio currently is worth K1 million and during the year the investor company at a price of K80 per share and 2000 shares of F Company at K40 per share. The proceeds are used to buy 1 600 shares of I Company at K100 per share. What was the portfolio rate of return? If the shares of M originally purchased for K70 and those in F were purchased for k35, and if the investor’s tax rate on capital gains income is 20 %, how much extra will the investor owe on this year’s taxes as a result of these transactions?
An investor’s portfolio currently is worth K1 million and during the year the investor company at a price of K80 per share and 2000 shares of F Company at K40 per share. The proceeds are used to buy 1 600 shares of I Company at K100 per share. What was the portfolio rate of return? If the shares of M originally purchased for K70 and those in F were purchased for k35, and if the investor’s tax rate on capital gains income is 20 %, how much extra will the investor owe on this year’s taxes as a result of these transactions?
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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An investor’s portfolio currently is worth K1 million and during the year the investor company at a price of K80 per share and 2000 shares of F Company at K40 per share. The proceeds are used to buy 1 600 shares of I Company at K100 per share.
- What was the portfolio
rate of return ? - If the shares of M originally purchased for K70 and those in F were purchased for k35, and if the investor’s
tax rate on capital gains income is 20 %, how much extra will the investor owe on this year’s taxes as a result of these transactions?
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