Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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- An investor buys shares in a mutual fund for $22. At the end of the year the fund distributes a dividend of $0.52, and after the distribution the net asset value of a share is $24.85. What is the investor's percentage return on the investment? Round your answer to two decimal places. 1arrow_forwardCompute the total and annual returns on the described investment. Five years after buying 200 shares of XYZ stock for $40 per share, you sell the stock for $11,500. The total return is %. (Do not round until the final answer. Then round to one decimal place as needed.)arrow_forwardAn investor purchased a stock one year ago for $82.00. It paid an annual cash dividend of $6.21 and is now worth $93.84. What total return did the investor earn? Would the investor have experienced a capital gain? Explain. The investor would experience a capital gain in the amount of $11.8411.84. The total return earned by the investor is $enter your response here. The total percentage return by the investor 22.0722.07%.arrow_forward
- Suppose you can buy 983 shares of Vertex Pharmaceuticals Incorporated (VRTX) stock on margin at $167 per share. Your initial margin is 51% and you borrow at the 7 percent. You sell your VRTX shares 6 months later for $185 per share. There were no dividends paid and the prices reflect commissions paid. What is your percent return if you buy on margin? [Enter the answer in as a percent (e.g., 5.55% = 5.55) - not a decimal]arrow_forwardYou purchase 110 shares for $40 a share ($4,400), and after a year the price falls to $35. Calculate the percentage return on your investment if you bought the stock on margin and the margin requirement was (ignore commissions, dividends, and interest expense): 15 percent. Use a minus sign to enter the amount as a negative value. Round your answer to one decimal place. % 50 percent. Use a minus sign to enter the amount as a negative value. Round your answer to one decimal place. % 75 percent. Use a minus sign to enter the amount as a negative value. Round your answer to one decimal place. %arrow_forwardIn your portfolio, you own Delta Air Lines and Coca Cola Company stock in which you initially purchase ten shares of each stock at $85 and $30 respectively. At the end of a month, DAL is valued at $90 and KO is valued at $28. Assume, they don’t pay a dividend. What is the initial value of the investment? What is the return (expressed as a percent) for Delta at the end of the first month? What is the return (expressed as a percent) for Coke at the end of the first month?arrow_forward
- An investor buys shares in a mutual fund for $22. At the end of the year the fund distributes a dividend of $0.57, and after the distribution the net asset value of a share is $24.04. What is the investor's percentage return on the investment? Round your answer to two decimal places.arrow_forwardAn investor buys shares in a mutual fund for $20. At the end of the year the fund distributes a dividend of $0.67, and after the distribution the net asset value of a share is $24.57. What is the investor's percentage return on the investment? Round your answer to two decimal places. %arrow_forwardAt the beginning of 2007, an investor buys 2 shares at $100 each. At the beginning of 2008, he buys another 3 shares at $120 each. At the beginning of 2009, he sells 1 share at $110 each. At the beginning of 2010, he sells the remaining 4 shares at $130 each. The stock does not pay any dividend. Calculate the dollar-weighted rate of return.arrow_forward
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