How much lower will your total return be because of traders

Assignment Help Financial Management
Reference no: EM131567841

You have a $103.000 portfolio comprising 14 stocks. You trade each stock five times this year and each time you trade, you pay about $29 in commissions and spread. You have no special knowledge, so you earn only the average market return of 15% on your Investments. How much lower will your total return be because of your trades?

As a result of your trades, your total return will be % lower. (Round to two decimal points.)

Reference no: EM131567841

Questions Cloud

What will be monthly loan payment : You want to buy a car, and a local bank will lend you $25,000. What will be the monthly loan payment?
What is the bond currents price if the yield to maturity : What is the bond's currents price if the yield to maturity is 6.91 percent?
New equipment-what is the terminal cash flow for project : You are analyzing the purchase of new equipment. What is the terminal cash flow for this project?
Potential credit risk exposure on the forward contract : What is the current potential credit risk exposure on the forward contract and who bears the risk?
How much lower will your total return be because of traders : How much lower will your total return be because of your trades?
What is equivalent annual annuity for each machine : Using the replacement chain approach to project analysis, What is the equivalent annual annuity for each machine?
Stock splits may be expected to increase shareholder value : Conceptually, stock dividends and stock splits may be expected to increase Shareholder's value.
Provide overview of financial markets and instruments : Provide an overview of the financial markets and the instruments used by companies.
Calculate your realized annual return is for the year : Consider the following Price and Dividend data for J. P. Morgan Chase: Calculate your realized annual return is for the year 2009.

Reviews

Write a Review

Financial Management Questions & Answers

  Fraud in the inducement

Nymeria buys a promissory note off of Yolanda for $300. Nymeria buys the note in good faith, and she is unaware of the fact that Yolanda secured the note from Georgia through Fraud in the Inducement. Nymeria seeks to enforce the note. Can she?

  Express total revenue as a function of quantity demanded

RMC's Smooth soap has a marginal cost of $0.387 per bar. Given the demand function we used in the chapter (demand=2.538 million/price^3), express total revenue as a function of quantity demanded. Show that marginal revenue equals marginal cost when t..

  Cash flow streams has the higher present value

Which of these cash flow streams has the higher present value if the discount rate is 5 percent?

  Division is considering two investment projects

Your division is considering two investment projects, each of which requires an up-front expenditure of $19 million.

  What is counts unlevered beta

Counts Accounting has a beta of 1.20. The tax rate is 40%, and Counts is financed with 45% debt. What is Counts' unlevered beta? Round your answer to two decimal places.

  Issue of preferred stock outstanding-what is required return

Smiling Elephant, Inc., has an issue of preferred stock outstanding that pays a $4.60 dividend every year, in perpetuity. what is the required return?

  Reviewing two mutually exclusive projects

You are reviewing two mutually exclusive projects. You have used several methods of evaluating their profitability. All else being equal, which one will you choose?

  Stock price range projection

Stock price range projection

  What must be the expected annual cash flow

It has been determined that using a discount rate of 10.8 percent, its net present value is $105,136. What must be the expected annual cash flow?

  Determine the beta coefficient for stock

Given the following information, determine the beta coefficient for Stock L that is consistent with equilibrium: = 10.25%; rRF = 6.75%; rM = 8%. Round your answer to two decimal places.

  Future value of an investment compounded at daily rate

Calculate the difference between the future value of an investment compounded at a daily rate and the future value of an investment compounded at an annual rate, given the following data: (a) Present Value: $125,670, (b) Interest Rate: 6.5%, and (c) ..

  What is the present value cost of owning the equipment

Lewis Securities Inc. has decided to acquire a new market data and quotation system for its Richmond home office. The system receives current market prices and other information from several online data services and then either displays the informati..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd