An investor buys 50 shares of BOA at $22.6 per share at the beginning of 2017,...

An investor buys 50 shares of BOA at $22.6 per share at the beginning of 2017, buys another 80 shares at $29.75 per share at the beginning of 2018, sells 30 shares at $24.08 per share at the beginning of 2019, and sells all 100 remaining shares at $35.35 per share at the beginning of 2020. BOA pays $0.39 per share of dividends at the end of 2017, pays $0.54 per share of dividends at the end of 2018, and pays $0.66 per share of dividends at the end of 2019. What is the dollar-weighted rate of return?

A. 10.5%

B. 10.4%

C.11.6%

D. 11.3%

Expert Solution

jeff jeffy answered 2 years ago

Investor buys 200 shares of stock at $27.25 per share. Investor sells the stock after one...

Investor buys 200 shares of stock at $27.25 per share. Investor sells the stock after one year. 1. What is the dollar amount of gain and the percent of return if the stock is sold for $32.60 per share? How much does the yield percentage increase to if the stock received a per share dividend of $1.15 during the year? 2. What is the dollar amount of loss and percentage of return if the stock received a per share dividend...

An investor buys 400 shares of stock selling at $70 per share using a margin of...

An investor buys 400 shares of stock selling at $70 per share using a margin of 40%. The stock pays annual dividends of $2 per share. A margin loan can be obtained at annual interest cost of 6%. Determine what return on invested capital the investor will realize if the price of the stock increases to $94 within twelve months. A. 33.54% B. 34.29% C. 37.14% D. 55.90% E. 83.86%

An investor buys 1,000 shares of Tundra Enterprises, Inc. at $45 1/2 per share. A year...

An investor buys 1,000 shares of Tundra Enterprises, Inc. at $45 1/2 per share. A year later, he sells his entire position at $53 1/4. The firm paid a dividend of $0.75 per share during this period. Based on this information, calculate the investor's realized return

An investor buys some shares of ABC for $20 at the beginning of the year. During...

An investor buys some shares of ABC for $20 at the beginning of the year. During the year he receives $0.50 in dividends, and then sells the shares for $21 at the end of the year. What is the total return on this investment?

An investor buys three shares of XYZ at the beginning of 2002 for $100 apiece. After...

An investor buys three shares of XYZ at the beginning of 2002 for $100 apiece. After one year, the share price has increased to $110 and he receives a dividend per share of $4. Right after receiving the dividend, he buys two additional shares at $110. After another year, the share price has dropped to $90, but the investor still receives a dividend per share of $4. Right after receiving the dividend, he sells one share at $90. After another...

An investor buys 100 shares of a stock, shorts 50 call options on the stock with...

An investor buys 100 shares of a stock, shorts 50 call options on the stock with strike price of $80 and buys 50 put options on the stock with strike price of $40. All options are one-year European options. Draw a diagram illustrating the value of the investor’s portfolio as a function of the stock price after one year.

In December 2017, an American investor buys 1,000 shares in a Mexican company at a price...

In December 2017, an American investor buys 1,000 shares in a Mexican company at a price of 500 pesos each. The share does not pay any dividend. A year later she sells the shares for 550 pesos each. Assume the exchange rate when she buys the stock is 19.131. Suppose that the exchange rate at the time of sale is 20 pesos = $1, answer the following requirements. a. How many dollars does she invest? (Do not round intermediate calculations....

An investor to buys Schlumberger Limited (SLB) share at $15 per share using $90,000 of his...

An investor to buys Schlumberger Limited (SLB) share at $15 per share using $90,000 of his own money and a margin loan. a. With an initial margin of 50% what is the maximum number of shares he can buy? b. If the maintenance margin is 20%, at what price will he get a margin call? And how much money would he need to add? c. If SLB stock price rises to $18, can the investor withdraw fund from the account?...

An investor purchased 550 shares of stock A at $22.50 per share and 1,050 shares of...

An investor purchased 550 shares of stock A at $22.50 per share and 1,050 shares of stock B at $30.50 per share one year ago. Stock A and stock B paid quarterly dividends of $2.50 per share and $2.00 per share, respectively, during the year. One year later, the investor sold both stocks at $30.50 per share. The correlation coefficient (ρAB) is 0.3 and the standard deviations of stock A and stock B are 20.5 percent and 15.5 percent, respectively....

An investor buys a stock for $40 per share and simultaneously sells a call option on...

An investor buys a stock for $40 per share and simultaneously sells a call option on the stock with an exercise price of $42 for a premium of $3 per share. Ignoring the dividends and transaction costs, what is the maximum profit the writer of this covered call can earn if the position is held to expiration?

Question