A foreign investor bough 2 millions lot (1 lot: 100 shares) share of stock at $9
ID: 2807116 • Letter: A
Question
A foreign investor bough 2 millions lot (1 lot: 100 shares) share of stock at $9,500/share. After 6 months, the price has risen to $10,200/share and pay dividend at $100/share. In the same month, the investor also bought 2,000 share of bonds at $100 millions per share. After 6 months, the price has changed to 110%, with coupon 12%. During that period, USD currency against Rupiahs changed from 1$=Rp10,100 to 1$=Rp10,300. Based on the data given, calculate the total investment return that the investor do!
Explanation / Answer
Total no of shares= 100×2= 200 million shares
Return from stock( 10200+100-9500)/9500= 8.42%
I.e., 200×800=16000 millions.
Return from bond:
Coupon= 2000×100×0.12=24000 millions
Increase in price 10×2000 = 20000 millions
Total= 44000 millions
Total return = 44000+16000= 60000 millions
Investment made by investor= 9500× 200+ 2000×100= $2100000
Return = 60000/2100000= 2.86% in $ terms.
Investment in Rupiah was= 2100000/10100= 207.93 Rupiah
Now value = 2160000/ 10300= 209.71 Rupiah
Return = 209.71-207.93/207.93= 0.855%
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.