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In: Finance
Calculate the euro-based return an Italian investor would have realized by investing €10,000 into a $50...
Calculate the euro-based return an Italian investor would have realized by investing €10,000 into a $50 American stock using 50 percent margin. One year after investment, the stock pays a $1 dividend, and sells for $54 the exchange has changed from €0.625 per dollar to €0.6875 per dollar. The interest on the margin loan is 1 percent per year. The margin loan was denominated in dollars.
Solutions
jeff jeffy answered 2 years agoRelated Solutions
Calculate the euro-based return an Italian investor would have realized by investing €10,000 into a $50...
Calculate the euro-based return an Italian investor would have
realized by investing €10,000 into a $50 American stock. One year
after investment, the stock pays a $1 dividend, and sells for $54
the exchange has changed from €0.625 per dollar to €0.6875 per
dollar, although he sold $17,600 forward at the forward rate of
€0.65 per dollar.
Calculate the euro-based return an Italian investor would have realized by investing €10,000 into a £50...
Calculate the euro-based return an Italian investor would have
realized by investing €10,000 into a £50 British stock. One year
after investment, the stock pays a £1 dividend, and sells for £54
the exchange rate has changed from €1.25 per pound to €1.30 per
pound, although he sold £8,800 forward at the forward rate of €1.28
per pound.
Return= 28%
Continue from problem #2. Assuming the same investor sold
£10,000 forward at the forward rate of €1.28 per pound (Instead...
Form a portfolio investing 50% of your money into Amazon and 50% into Pfizer. a)Calculate the...
Form a portfolio investing 50% of your money into Amazon and 50%
into Pfizer.
a)Calculate the monthly return for each month of the portfolio.
Then, provide arithmetic average and standard deviation of the
portfolio return. Check and report whether the linear combination
(weighted average) of standard deviation of two companies is
smaller than portfolio’s standard deviation or not.
b)Calculate the monthly market return, average market return,
and market variance using S&P500 Index. Using the variance of
market return and covariance...
Using the data in the table to the right, calculate the return for investing in the...
Using the data in the table to the right, calculate the return
for investing in the stock from January 1 to December 31. Prices
are after the dividend has been paid. Date Price Dividend Jan 1 $
31.43 minus Feb 5 $ 32.72 $ 0.17 May 14 $ 28.25 $ 0.18 Aug 13 $
32.98 $ 0.22 Nov 12 $ 39.59 $ 0.21 Dec 31 $ 43.76 minus Return for
the entire period is 31.17%. (Round to two decimal places.)
Using the data in the table to the right, calculate the return for investing in the...
Using the data in the table to the right, calculate the return
for investing in the stock from January 1 to December 31. Prices
are after the dividend has been paid. Date Price Dividend Jan 1 $
34.77 minus Feb 5 $ 31.62 $ 0.17 May 14 $ 28.37 $ 0.17 Aug 13 $
32.56 $ 0.17 Nov 12 $ 39.25 $ 0.18 Dec 31 $ 41.24 minus
Using the data in the table to the right, calculate the return for investing in the...
Using the data in the table to the right, calculate the return
for investing in the stock from January 1 to December 31. Prices
are after the dividend has been paid.
Date
Price
Dividend
Jan1
$34.21
-
Feb 5
$30.65
$0.18
May 14
$29.98
$0.18
Aug 13
$30.18
$0.18
Nov 12
$36.75
$0.21
Dec 31
$42.79
-
Using the data in the table to the right, calculate the return for investing in the...
Using the data in the table to the right, calculate the return
for investing in the stock from January 1 to December 31. Prices
are after the dividend has been paid. Date Price Dividend Jan 1
$33.86 − Feb 5 $32.48 $0.17 May 14 $30.53 $0.18 Aug 13 $32.08 $0.19
Nov 12 $39.18 $0.22 Dec 31 $42.72 -
Using the data in the table to the right, calculate the return for investing in the...
Using the data in the table to the right, calculate the return
for investing in the stock from January 1 to December 31. Prices
are after the dividend has been paid.
Date Price Dividend
Jan 1 $ 32.42 0
Feb 5 $ 32.17 $ 0.18
May 14 $ 30.73 $ 0.21
Aug 13 $ 32.83 $ 0.17
Nov 12 $ 38.79 $ 0.21
Dec 31 $ 42.84 0
Using the data in the table to the right, calculate the return for investing in the...
Using the data in the table to the right, calculate the return
for investing in the stock from January 1 to December 31. Prices
are after the dividend has been paid.
Date
Price
Dividend
Jan 1
$32.28
−
Feb 5
$29.48
$0.19
May 14
$31.55
$0.17
Aug 13
$33.47
$0.18
Nov 12
$37.81
$0.18
Dec 31
$42.48
−
Return for the entire period is
(Round to two decimal places.)
understand : 1.how to Calculate realized and expected rates of return and risk ? 2. Describe...
understand :
1.how to Calculate realized and expected rates of return and
risk ?
2. Describe the historical pattern of financial market
returns.
3.Compute geometric (or compound) and arithmetic average rates
of return.
Explain the efficient market hypothesis and why it is important
to stock prices
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