How much would you lose over 5 years

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Reference no: EM131234066

1. Your stock costs $100 today, pays $5 in dividends at the end of the period, and then sells for $98. What is your rate of return?

2. The interest rate has just increased from 6% to 8%. How many basis points is this?

3. Assume an interest rate of 10% per year. How much would you lose over 5 years if you had to give up interest on the interest-that is, if you received 50% instead of compounded interest?

Reference no: EM131234066

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