Question

In: Finance

You own 400 shares of Shamrock Enterprises that you bought at $18 a share. The stock...

You own 400 shares of Shamrock Enterprises that you bought at $18 a share. The stock is now selling for $32 a share. You put in a stop loss order at $28. If the stock eventually declines in price to $21 a share, what would be your rate of return with and without the stop loss order? Round your answers to two decimal places.

Rate of return with the stop loss in percent

Rate of return without the stop loss in percent

Solutions

Expert Solution

Rate of return with stop loss as stop loss would have got executed=[Stop loss price -buying price]/ Buying price

= (28-18)/18= 55.5555%

B. Rate of return without any kind of stop loss

= (Current selling price-buying price)/buying price

= (32-18)/18

=77.77%

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

You short sold 400 shares of a stock at $51 a share. The initial margin is...
You short sold 400 shares of a stock at $51 a share. The initial margin is 50% and the maintenance margin is 25%. What is the amount of your liability for this transaction as initially shown on your account balance sheet? Select one: a. $7,650 b. $5,100 c. $15,300 d. $10,200 e. $20,400 The answer is d or e? what does it mean initial transaction? The first transaction that is shown on the Liability and Equity?
you bought 400 shares of Brooklyn Trading Co. on margin at $55 per share yesterday. Initial...
you bought 400 shares of Brooklyn Trading Co. on margin at $55 per share yesterday. Initial margin and maintenance margin are 35% and 45% respectively. The stock price per share goes down to $52 today. What is the equity value today on your margin account and what is the margin percent as of today?  
You own a portfolio that has 6,600 shares of stock A, which is priced at 18...
You own a portfolio that has 6,600 shares of stock A, which is priced at 18 dollars per share and has an expected return of 7.42 percent, and 3,300 shares of stock B, which is priced at 20.2 dollars per share and has an expected return of 11.15 percent. The risk-free return is 3.57 percent and inflation is expected to be 1.94 percent. What is the expected real return for your portfolio? Answer as a rate in decimal format so...
Suppose you bought 100 shares of stock at an initial price of $37 per share. The...
Suppose you bought 100 shares of stock at an initial price of $37 per share. The stock paid a dividend of $0.28 per share during the following year, and the share price at the end of the year was $41. (1) What is your total dollar return on this investment? (2) What is the percentage return on the investment?
Suppose you bought 550 shares of stock at an initial price of $50 per share. The...
Suppose you bought 550 shares of stock at an initial price of $50 per share. The stock paid a dividend of $0.54 per share during the following year, and the share price at the end of the year was $45. a. Compute your total dollar return on this investment. (A negative value should be indicated by a minus sign.) b. What is the capital gains yield? (A negative value should be indicated by a minus sign. Do not round intermediate...
You own 395 shares of Stock X at a price of $36 per share, 265 shares...
You own 395 shares of Stock X at a price of $36 per share, 265 shares of Stock Y at a price of $59 per share, and 330 shares of Stock Z at a price of $82 per share. What is the portfolio weight of Stock Y?
You own 1,100 shares of stock in Avondale Corporation. You will receive a $2.00 per share...
You own 1,100 shares of stock in Avondale Corporation. You will receive a $2.00 per share dividend in one year. In two years, the company will pay a liquidating dividend of $75 per share. The required return on the company's stock is 20 percent.    a. Ignoring taxes, what is the current share price of your stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)(Show work) b. If you would rather have equal...
You own 1,100 shares of stock in Avondale Corporation. You will receive a $1.80 per share...
You own 1,100 shares of stock in Avondale Corporation. You will receive a $1.80 per share dividend in one year. In two years, the company will pay a liquidating dividend of $45 per share. The required return on the company's stock is 20 percent.    a. Ignoring taxes, what is the current share price of your stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. If you would rather have equal dividends...
You own 1,100 shares of stock in Avondale Corporation. You will receive a $2.00 per share...
You own 1,100 shares of stock in Avondale Corporation. You will receive a $2.00 per share dividend in one year. In two years, the company will pay a liquidating dividend of $48 per share. The required return on the company's stock is 20 percent. a. Ignoring taxes, what is the current share price of your stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. If you would rather have equal dividends in...
1. You own 500 shares of Stock A at a price of $65 per share, 597...
1. You own 500 shares of Stock A at a price of $65 per share, 597 shares of Stock B at $71 per share, and 550 shares of Stock C at $34 per sharer. The betas for the stocks are 1.7, 1.2, and 0.6, respectively. What is the beta of your portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 2. A stock has an expected return of 13.7 percent, a beta of 1.9, and the...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT