On January 2, 2019 Sona bought 10 lots (1,000 stocks) of COPA at $10,000,000. During that year, she received dividend of $25,000 per lot ($ 250,000 for all the stocks). On January 2, 2020 she bought 5 more lots of the stock at $6,000,000. This year COPA paid dividend of Rp30,000 for one lot. By the end of year 2020, Sona sold all her stocks and got $1,300,000 per lot ($19,500,000 in total). Calculate: a) Arithmetic return b) Geometric return c) Money-weighted return
On January 2, 2019 Sona bought 10 lots (1,000 stocks) of COPA at $10,000,000. During that year, she received dividend of $25,000 per lot ($ 250,000 for all the stocks). On January 2, 2020 she bought 5 more lots of the stock at $6,000,000. This year COPA paid dividend of Rp30,000 for one lot. By the end of year 2020, Sona sold all her stocks and got $1,300,000 per lot ($19,500,000 in total). Calculate: a) Arithmetic return b) Geometric return c) Money-weighted return
Chapter9: Acquisitions Of Property
Section: Chapter Questions
Problem 65P
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Transcribed Image Text:On January 2, 2019 Sona bought 10 lots (1,000
stocks) of COPA at $10,000,000. During that
year, she received dividend of $25,000 per lot
($ 250,000 for all the stocks). On January 2,
2020 she bought 5 more lots of the stock at
$6,000,000. This year COPA paid dividend of
Rp30,000 for one lot. By the end of year 2020,
Sona sold all her stocks and got $1,300,000 per
lot ($19,500,000 in total).
Calculate:
a) Arithmetic return
b) Geometric return
c) Money-weighted return
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