b. allocation of risk separation of ownershig ad of nisk c. ANS I. Computations

Question

b. allocation of risk separation of ownershig ad of nisk c. ANS I. Computations 16. You purchased 6 shares of stock for $25, but the market is taking a downturn. One later you received $3 per share as dividends and sold all the share for $20. Answer the following year a. What is the capital gains yield? ANS: b. What is the dividend yield? ANS c. What is your dollar profit or loss amount? d. What it a loss or gain? ANS:- a ANS: e, what is your holding period return (% return)? ANS: ANS: 17. An investor purchased a bond 30 days ago for $1,050. He received $12 in interest and sold the bond for $1,100, what is the holding period retum (% return) on his invest- ANS menr FIN 344 Quiz 1 C-3

Explanation / Answer

15) d) elimination of risk 16) You purchased 6 shares of a stock for $25. One year later you received $3 per share in dividends One year later you sold all the shares for $20 a) CAPITAL GAINS YIELD (20-25)/25 CAPITAL GAINS YIELD -20% b) DIVIDEND YIELD (3)/25 DIVIDEND YIELD 12% c) Dollar profit or loss amount 6*(20-25)+6*3 Dollar profit or loss amount (-30+18) Dollar loss amount -12 d) It was a loss e) Holding period return Capital gains yield + Dividend yield Holding period return (-20%+12%) Holding period return -8% 17) In 30 days Purchase price of bond 1050 Interest 12 Selling price 1100 Holding period return of investment (1100-1050+12)/1050 Holding period return of investment 0.059048 Holding period return of investment 5.905%

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.