Money-weighted rate of return on the bank''s portfolio

Reference no: EM13848591

How about this one? How much would you charge?

A bank buys 150 shares of a company on 1 January 2012 at a price of $156.30 per share. A dividend of $10 per share is paid on 1 January 2013. Assume that this dividend is not reinvested. Also on 1 January 2013, the bank sells 100 shares at a price of $165 per share. On 1 January 2014, the bank collects a dividend of $15 per share (on 50 shares) and sells its remaining 50 shares at $170 per share.

A) Write the formula to calculate the money-weighted rate of return on the bank's portfolio?

B) Calculate the time-weighted rate of return on bank's portfolio?

Reference no: EM13848591

Questions Cloud

The popularity of the balanced scorecard : The popularity of the Balanced Scorecard could be seen as a reflection of its value in strategic control and performance management. However, others might argue that it has become somewhat hegemonic and that, as noted by Leung, Lam & Cao (2006) this ..

Calculate the debt to equity ratio : Calculate the debt to equity ratio for the last two years of Sony Corp. Discuss in your own words what those ratios reveal about your company.Please put in word doc?

The factors that contributed to the financial difficulties : From the e-Activity Part 2, assess the factors that contributed to the financial difficulties, how these difficulties were concealed by the company, the resulting impact to investors, and how knowledge of this history should impact decisions made by ..

Cash and working capital : Cash and Working Capital Complete an APA-formatted two-page paper (not including the title and reference pages) answering the following questions. What are four general phases of the working capital cycle?

Money-weighted rate of return on the bank''s portfolio : A bank buys 150 shares of a company on 1 January 2012 at a price of $156.30 per share. A dividend of $10 per share is paid on 1 January 2013. Assume that this dividend is not reinvested. Also on 1 January 2013, the bank sells 100 shares at a price of..

The current price of a 6-month zero coupon bond : The current price of a 6-month zero coupon bond with a facevalue of $100 is B1. If a 9-month strip with a face value of $100 is currentlytrading for B2, find the forward interest rate for the 6 to 9 month period.Solve by both continuous compounding a..

What is the relation between h and h : A toy car rolls down the inclined plane as shown in the fig. It goes around the loop at the bottom. What is the relation between H and h?

Different salary arrangements : You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two different salary arrangements. You can have $79,000 per year for the next two years, or you can have $68,000 per year for the next two years, along wi..

What is the present value of these cash flows : Investment X offers to pay you $4,500 per year for 9 years; whereas Investment Y offers to pay you $6,600 per year for 5 year the discount rate is 6 percent, what is the present value of these cash flows? If the discount rate is 16 percent, what is t..

User Account

All Pages