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- You have the following share price of XYZ. DATE Price 2-Mar-2021 $100 3-Mar-2021 $60 4-Mar-2021 $40 5-Mar-2021 $100 Investor A bought 100 shares of XYZ on 2-Mar-2021 and sold all the shares on 5-Mar-2021. Which answer is the closest value to the geometric average rate of return for the investor? A. 15% B. 20% C. 25% D. 0%An investor who bought money-market securities at a yield of 5.50% p.a. and sold the parcel for a few weeks later at a yield of 5.85% p.a. would earn: a interest b a capital loss c a capital gain d. interest and a capital loss e. interest and capital gain.You have the following share price of XYZ. DATE Price 2-Mar-2021 $100 3-Mar-2021 $60 4-Mar-2021 $40 5-Mar-2021 $100 Investor B bought 100 shares of XYZ on 2-Mar-2021 and sold all the shares on 5-Mar-2021. Which answer is the closest value to the arithmetic average rate of return for the investor? A. 20% B. 15% C. 25% D. 0%
- 三 An investor owns $3.000 of Adobe Systems stock, $6.000 of Dow Chemical, and $7,000 of Office Depot What are the portfolio weights of each stock? (Round your answers to 4 declmal places.) Portfolio weights Adobe System Dow Chemical Office Depot లడిస సటర్ బలలర్ 1 of 6 Next > here to search F4 F5 F7 F8 Coc-aQuestion 4 You are a financial investor who actively buys and sells in the securities market. Now you have a portfolio, including four shares: $7,500 of Share A, $4,800 of Share B, $5,700 of Share C, and $2,500 of Share D. Required: A)Compute the weights of the assets in your portfolio? B)If your portfolio has provided you with returns of 7.7%, 10.5%, - 8.7% and 14.2% over the past four years, respectively. Calculate the geometric average return of the portfolio for this period? C)Assume that expected return of the stock A in your portfolio is 13.2%. The risk premium on the stocks of the same industry are 6.8%, beta of this stock is 1.3. Calculate the risk-free rate of return using Capital market pricing model (CAPM). ? D)You have another portfolio that comprises of two shares only: $500 Tesla shares and $700 Eagle shares. Below is the data of your portfolio: Tesla Eagle Expected…Question 2 The following is the information for securities of ABC plc and XYZ plc: XYZ plc 26 40 1.25 Particulars Expected return Standard deviation Beta ABC plc 25 42 0.85 The correlation coefficient between the returns of the two securities is 0.70 and standard deviation of the market return is 20%. Required (a) As a new graduate accountant, CPA(T), determine if it is better to invest in securities of ABC plc or XYZ plc (b) If the proportional of investment in ABC plc is 40% and that in XYZ plc is 60% determine the expected rate of return and portfolio standard deviation (c) Determine the risk free rate
- You purchased three contracts of "XYZ December 4 2015 84.00 Call" at $5.50 per options and exercised it when the underlying stock price was $92. What was your profit and return on the investment, excluding the commisions.Year 2018 2019 2020 2021 Beginning-of-Year Price $ 120 144 108 120 Dividend Paid at Year-End $4 4 An investor buys three shares of XYZ at the beginning of 2018, buys another two shares at the beginning of 2019, sells one share at the beginning of 2020, and sells all four remaining shares at the beginning of 2021. a. What are the arithmetic and geometric average time-weighted rates of return for the investor? (Round your year-by-year rates of return and final answers to 2 decimal places. Do not round other calculations.) Answer is complete but not entirely correct. Arithmetic average rate of return Geometric average rate of return 2.08% 123%1. What is the percentage margin of a margin call if an investor has purchased $10,000 worth of securities and the broker requires a margin of $5,000?
- What is the beta of a portfolio comprised of the following securities? Stock Amount Invested Security Beta- 0.86 1.76 1.35 A B C $3600 $ 2800 $ 9000 Beta of portfolio to 2 decimal places is Numeric ResponseWhat is the beta of a portfolio comprised of the following securities? Stock Amount Invested Security Beta A $ 5,000 1.64 B $ 6,000 1.75 C $ 8,500 1.00Owner h for te a 3. O nko 100 a) 4. Draw Eg. How much stock is sold? Vehicles t equation. accounts Capita' The owner me that + SALES g account isabel Calculate the selling price of the stock sold. * How much of the stock is left unsold ? 15000 - 2000 e EXERCISE 12 Use the following two transactions to complete this exercise: Purchased trading stock per cheque, R5 000. Sold R2 000 of the stock for cash at a profit mark-up of 60%. Required: (Show workings) 3200 EXERCISE 2.2 01511 5000 LEVEL 29. % Bank 3200 ACTUAL MARK ado Aere Use the following T- Accounts, try to complete the double entry principle for the a + BANK TRADING S Sales 3200 EMO 5000 SIMULATION ... trading 2000 COST OF EXERCISE 13 Arrange the following steps in the accounting cycle in the correct sequence. W indicate the corect sequence: