Arthur buys $2, 000 worth of stock. Six months later, the value of the stock has risen to $2, 200 and Arthur buys another $1, 000 worth of stock. After another eight months, Arthur’s holdings are worth $2, 700 and he sells of $800 of them. Ten months later, Arthur finds that his stock has a value of $2, 100. (a) Compute the annual time-weighted yield rate of the stock over the two-year period. (B) Compute the annual dollar-weighted yield for Arthur over this two-year time period.

Claire Gerber wants to buy 100 shares of Google, which is selling in the market for $548.66 a share. Rather than liquidate all her savings, she decides to borrow through her broker at 5 percent a year. Assume that the margin requirement on common stock is 50%. If the stock rises to $625 a share over the next year, calculate the dollar profit and percentage return that Claire would earn if she makes the investment with 50% margin. Contrast these figures to what she'd make if she uses no margin. Calculate the dollar net profit. Round the answers to the nearest dollar. Without Margin With 50% Margin     Calculate the return on investment. Round the answers to two decimal places. Without Margin With 50% Margin

Julie has one share of stock and one bond. The total value of the two securities is $1,102.14. The stock pays annual dividends. The next dividend is expected to be $15.15 and paid in one year. In two years, the dividend is expected to be $11.79 and the stock is expected to be priced at $254.84. The stock has an expected return of 11.19 percent per year. The bond has a coupon rate of 7.10 percent and a face value of $1,000; pays semi-annual coupons with the next coupon expected in 6 months; and matures in 17.5 years. What is the YTM of the bond? 8.68% (plus or minus 4 bps) 8.51% (plus or minus 4 bps) 4.26% (plus or minus 4 bps) 9.25% (plus or minus 4 bps) the answer cannot be obtained based on the given information

1.Louis has invested $1,000 in the stock market. At the end of one year, there is a 30% chance that his stock will be worth only $800 and a 70% chance that it will be worth $1,200. The expected value of his stock at the end of one year is: A)$1,000. B)$1,080. C)$1,200. D)$1,160. 2.Domingo has a total wealth of $500,000 composed of a house worth $100,000 and $400,000 in cash. He keeps the cash in a safe deposit box, so that it is completely safe. However, there is a 10% chance that his house will burn down by the end of the year and be worth nothing and a 90% chance that nothing will happen to it. Without insurance, the expected value of his end-of-year wealth is: A)$410,000. B)$450,000. C)$490,000. D)$485,000. 3.Micah is considering turning pro before his senior year basketball season. If he turns pro, Micah expects a pro contract worth $2 million in present value. If he does not turn pro, there is a 50% chance an injury will prevent him from playing…

Gareth owns 1 share of stock A and 1 share of stock B.  In 1 year from today, the total value of his holdings is expected to be 119.42 dollars.  Stock A is currently priced at 47.13 dollars, has an expected return of 12.58 percent, and is expected to pay a dividend of 6.54 dollars in 1 year from today.  Stock B is currently priced at 74.88 dollars and is expected to pay a dividend of 5.93 dollars in 1 year from today.  What is the expected return for stock B?  Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

You are evaluating the purchase of Bell, Inc. common stock that just paid a dividend of $4.60. You expect the dividend to grow at a rate of 10% for the next four years. You plan to hold the stock for four years and then sell it. You estimate the price of the company’s stock to rise to $59.37 at the end of your four-year holding period. A required rate of return of 13% will be adequate compensation for this investment. Given your assumptions, what is the current value of Bell stock? Round to the nearest $0.01 (allow a couple of pennies of rounding). answer is 53.62

You own 600 shares of stock in Avondale Corporation. The company plans to pay a dividend of $2.48 per share in one year and a final liquidating dividend of $20.10 per share two years from now. The required return on Avondale stock is 16.3 percent. What will your dividend income be this year if you use homemade dividends to create two equal annual dividend payments?

Carl owns investment A and 1 share of stock B. The total value of his holdings is $531.73. Stock B has an annual expected return of 15.78 percent. The stock's next annual dividend is expected to be $12.19 in 1 year and all subsequent dividends are expected to grow annually by 5.25 percent forever. Investment A has an expected return of 7.17 percent and is expected to pay X per year for a finite number of years such that its first annual payment is expected later today and its last annual payment is expected in 10 years from today. What is X, the annual cash flow made by investment A? O $-13.87 (plus or minus 10 cents) $52.20 (plus or minus 10 cents) $60.85 (plus or minus 10 cents) $51.91 (plus or minus 10 cents) the answer cannot be obtained based on the given information

Paul sells a stock short for $50.76 per share and buys it back 1 year later for $54.99 after he covers a $2.81 per share dividend. What is Paul’s total return on this investment? (Round answer to 2 decimal places (e.g., 36.45). Use a negative sign for a negative return.)

Abigail bought 28 shares of stock at $30.00 per share. She received dividends of $49.50 during the year. At the end of the year, her stock was valued at $43.50 per share. What was her ROI (Return on Investment)?