Solution-Identify dividend return and capital loss

Identify dividend return and capital loss

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Q1) You are comparing two investments. Both require a $2500 initial investment. Investment A returns $4700 in eight years. Investment B pays $5650 in 12 yrs. Which of these investments has the higher return?

Q2) You have just concluded the purchase of a new warehouse. To finance the purchase, you've arranged for a 20-year mortgage for 80 per cent of the $400,000 purchase price. The monthly payment will be $3,000. What is the NIR on the loan? The effective annual rate?

Q3) You bought a stock at the beginning of the year for $4.20 and sold it for $3.10. If you received a dividend income of $0.24 during the year, what is the return on your investment? Identify your dividend return and capital loss.

Q4) If a government bond is paying 9% and the inflation rate is 5%. What is the (a) nominal rate and (b) real rate?

Q5) CALCULATING PORTFOLIO BETAS: You own a stock portfolio invested 25 percent in Stock Q, 20 percent in Stock R, 15 percent in Stock S, and 40 percent in Stock T.

The betas for these 4 stocks are 0.84, 1.17, 1.11 and 1.36, respectively.

What is the portfolio beta?

Reference no: EM133062774

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Identify dividend return and capital loss

Reference no: EM133062774

Reference no: EM133062774

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