An investor purchased 20 shares of stock in a company for $45 per share. One year later, the investor sold all the shares for $41 per share. What is the investor's rate of return? A. -8.9% B. 8.9% C. -9.8% D. 9.8%

Q: What are the dividend yield, capital gains yield, and total percentage return?

A: The dividend yield is the return on security generated through the distribution of dividends. It is…

Q: u bought 400 shares of Metallica Heavy Metal, Inc., at $30 per share. Over the year, you received…

A: Perentage return is calculated as subtracting the initial cost of investment from the final value…

Q: Last year, Carlotta bought five shares of Spot-Off Cleaners for $85 each. During the year, Carlotta…

A: Dividend Yield refers to the amount of dividend paid on each stock. It is usually calculated in…

Q: You bought 100 shares of stock at $25 each. At the end of year 1 you received $300 in dividends and…

A: An annual rate of return refers to the rate at which an investment earns profit during a year. When…

Q: Last year, Julie Johnson bought one share of com- mon stock for $950. During the year, Julie…

A: a) Rate of Return on her Investment = (Sell Price - Purchase Price + Dividend Received) / Purchase…

Q: An investor purchased shares of stock in a company for $800. One year later, the investor sold all…

A: Given: Purchased = $800 Sold = $820

Q: An investor purchased 50 shares of stock in a company for $1000. Ône year later, the investor sold…

A: Given: Purchase price = $1000 Selling price = $950

Q: An investor puts up $ 5,000 but borrows an equal amount of money from their broker to double the…

A: Given: Equity = $5,000 Borrows = $5,000 Broker charges = 7% Stock price = $25 Selling price = $28…

Q: Today, you sold your stock at a price of $38.88 per share. What was your total dollar return on the…

A: No. of shares purchased 850  Purchase price= $35.93 per share. Dividend per share $ 0.45 Selling…

Q: You own 100 shares of stock of unlevered Shaan Company which has 1,000 shares outstanding. Shaan…

A: Here,

Q: An investor purchased 50 shares of stock in a company for $20 per share. One year later, the…

A: In this question we need to calculate the investor's rate of return:

Q: On February 1, you bought 100 shares of a stock for $34 a share and a year later you sold it for $39…

A: Given: Number of shares = 100 Purchase price = $34 Closing price = $39

Q: Purchased 100 shares of my airlines stock for $12 per share. The next year the stock paid a dividend…

A: The formula for the total stock return is the appreciation in the price plus any dividends paid,…

Q: On January 1, you sold short one round lot (that is, 100 shares) of Four Sisters stock at $21 per…

A: Calculation of Value of Account on 01-Apr-21

Q: On March 1st, Frank opens a brokerage account and sell shorts 300 shares of Doggie Treats Inc. at…

A: Stock: Stock is the number of shares being owned by the company. It is being segregated into two…

Q: Problem 2: You bought 400 shares of Heavy Metal Inc. at ₱300 per share over the year, you received…

A: The annual rate of return is the annual income earned from an investment which is considered in…

Q: An investor purchases 1000 shares of a company at GHS20 per share using his own equity of GHS10,000…

A: Number of shares purchased = 1000  Cost Price per share = GHS20 Own equity = GHS10,000 Selling price…

Q: On January 1, you sold short 100 shares of XYZ stock at $20 using a 50% initial margin. The interest…

A: Given, Stock XYZ sold at = $20 Initial margin = 50% Interest rate = 10% annually Bought stock at =…

Q: You short sold 700 shares of a stock at $25 a share. The initial margin requirement is 75 percent…

A: If the initial margin is 75%, it means 25% of the investment is financed by a loan from the…

Q: You purchased a stock at a price of $24.  A year later the stock is worth $29, and during the year…

A: The calculation is:

Q: An investor purchased 500 shares of Electric Shaver Corporation stock at a price of $22.50 per…

A: Calculate the total percentage return as follows:

Q: An investor purchased stock for $1000. His dividends in the first five years were: $140, $150, $170,…

A: The calculation of the rate of return as follows:

Q: You invest in Sandhill Corp. stock at a price of $63.50 per share. At the end of one year, you sell…

A: The return on investment can be computed as income earned on one share divide by market price per…

Q: An investor bought 100 shares of Omega common stock for $14,000. He held the stock for 9 years. For…

A: The expected return of investment refers to the return that is anticipated on an investment.…

Q: Suppose you bought 400 shares of stock at an initial price of $53 per share. The stock paid a…

A: Total dollar return = [(Share price at the end of year - Purchase price) + Dividend per share] x…

Q: The price of a stock starts at $60 per share. The stock price rises at an average rate of $0.75 per…

A: The dividend yield is the yearly dividend payments to a firm's shareholders expressed as a…

Q: On March 1st, Frank opens a brokerage account and sell shorts 200 shares of Doggie Treats Inc. at…

A: The margin requirement is the minimum amount that the investor needs to keep in the margin account.…

Q: Six months ago, you purchased 1,900 shares of ABC stock for $25.24 a share. You have received…

A: Dollar return on investment =  no. of shares * (sell price - purchase price +dividend)

Q: On January 1, you sold short one round lot (i.e., 100 shares) of Four Sisters stock at $21 per…

A: Given Information:- Four Sisters stock price is $21 per share on january,1 Four Sisters stock price…

Q: Based on a company’s P5.00 dividend payments and estimated future value of P200.00 per share after…

A: Let the growth rate = g Let Dn be the dividend in year n. D0 = P 5 D1 = 5(1+g) D2 = 5(1+g)^2 P0 =…

Q: You purchased 1,000 shares of stock at $42 a share. The stock is currently selling for $45 a share.…

A: given, number of shares = 1000 stock price = $42 initial margin = 70% maintenance margin = 30%…

Q: Lee purchased a stock one year ago for $26. The stock is now worth $34, and  the total return to Lee…

A: Dividend: Dividend refers to the return on capital invested in shares. It is payable to the…

Q: Last year you bought 100 shares of NC Corp. common stock for P53 per share. During the year you…

A: The rate of return is simply calculated as capital gain yield plus dividend yield

Q: You purchase 800 shares of stock at a price of $20 per share. One year later, the shares are selling…

A: The capital gains yield is calculated as change in share price over the holding period divided by…

Q: An investor purchased 100 shares of stock in a company for $20 per share. One year later, the…

A: The rate of return is the percentage rate that shows the net gain/ (loss) earned during the period…

Q: An investor purchased 50 shares of stock in a company for $600. One year later, the investor sold…

A: purchase price = $600 selling price = $13 shares = 50 total selling price = $13 x 50 = $650

Q: What is the total annual dividend received from owning 100 shares of stock A, if Company A issues a…

A: Given: Quarterly dividend = $0.2

Q: What is your total percentage return on this investment? What is your total dollar return on this…

A: The expected return of investment refers to the return that is anticipated on an investment.…

Q: An investor purchased 50 shares of stock in a company for $1,600. One year later, the investor sold…

A: given, purchase price = $1600 Selling price = $1500

Q: An investor buys $ 16,000 worth of a stock priced at $ 18 per share using 70 % initial margin . The…

A: The initial margin on an investment is the starting amount that an investor who wishes to open a…

Q: An investor purchased 50 shares of stock in a company for $600. One year later, the investor sold…

A: In this question we require to calculate the Investor's rate of return form the given information :…

Q: Abigail bought 28 shares of stock at $30.00 per share. She received dividends of $49.50 during the…

A: GIVEN ÷ Purchase price per share = $30 No. Of shares purchased = 28 shares Total dividend received =…

Q: Today, Andrew sold 3,600 shares of Colts stock for $26.60 per share. Andrew paid $101,124 for the…

A: Calculate the total return as follows:

Q: An investor buys 300 shares of stock selling a $76 per share using a margin of 59%. The stock pays…

A: Number of shares = 300 shares Selling price per share = $76 Annual dividend = $3 Annual interest…

Q: What is Jane's realized rate of return for the year from the stock? Answer as a percentage, 2…

A: Information Provided: Purchase price = $58.80 Dividend per share = $1.12 Selling price = $52.33

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.