Holding period returns

Assignment Help Microeconomics
Reference no: EM13695059

Holding Period Returns

a) Assume that a 10 percent-coupon bond ($1000 face-value) is purchased at a price of $960, held one year, and sold for $1020. What is the one-year holding period return for this coupon bond?

b) Assume that 100 shares of a stock are purchased at $30 per share and sold one year later at $26 per share. A dividend of $2 per share is paid. What is the one-year holding period return for this stock?

Reference no: EM13695059

Questions Cloud

Calculate the size of the budget surplus for the economy : What is the equation for aggregate demand (AD) for this economy? Calculate the equilibrium level of income and the multiplier. Calculate the size of the budget surplus (or deficit) for the economy
What determines the quantity of variable input : What determines the quantity of variable input(s) (labor) that the manager of a firm employs? Use economic principle (law) to explain this.
Suppose a portfolio of risky assets has an expected return : Suppose a portfolio of risky assets has an expected return of 5.57% [E(r) = 0.0557] and a standard deviation of 20.33% [? = 0.2033]. For the questions below assume normal distribution. What is the probability that the portfolio will fall by more than..
Portfolio consists of each asset equally weighted : Four assets have the following expected returns: A = 15%; B = 12%; C = 30%, and D = 22%. Calculate the expected returns for a portfolio under the following conditions: Portfolio consists of each asset equally weighted
Holding period returns : Assume that a 10 percent-coupon bond ($1000 face-value) is purchased at a price of $960, held one year, and sold for $1020. What is the one-year holding period return for this coupon bond?
Simply a form of price discrimination : Supermarkets frequently issue coupons that entitle consumers to a discount in selected products. Is this a promotional strategy, or simply a form of price discrimination?
Find the optimal price-quantity combination in each market : A monopoly with constant marginal costs of $50 can sell to three groups of potential consumers, with demands Q1 = 800 ? 0.2p, Q2 = 400 ? p, and Q3 = 700 ? 0.4p respectively. Find the optimal price- quantity combination in each market (i) if the firm ..
Affect a marketing strategy in an emerging market : How might this affect a marketing strategy in an emerging market? Is it possible for an economy to experience economic growth as measured by total G.D.P. without a commensurate rise in the standard of living?
Estimate a short run production function for your firm : Does a cubic equation appear to be suitable specification given these data? You may wish to construct a scatter diagram to help you answer this question. Using a computer for regression analysis, estimate your firm's short run production function usi..

Reviews

Write a Review

Microeconomics Questions & Answers

  How does make sense using supply and demand in market

Professional sports players are generally paid much more than farmers, factory workers, engineers, and teachers. The markets for the professional sports players, farmers, factory workers, engineers and teachers are generally competitive.

  Assume that the federal reserve the fed unexpectedly shifts

assume that the federal reserve the fed unexpectedly shifts to restrictive monetary policy. why would the fed make such

  Evaluate the role and the effectiveness of the federal

Evaluate the role and the effectiveness of the Federal Reserve in stabilizing the current economy.

  Find the total fixed cost for the el dorado star if total

the el dorado star is the only newspaper in el dorado new mexico. certainly the star competes with the wall street

  Develop the realistic scenario which illustrates

create a realistic scenario that illustrates the aggregate-demand aggregate-supply model. in your scenario you should

  Calculate the price elasticity of demand for each group

The makers of academic books find that, when they raise the price of the average hard copy book from $50 to $75, quantity demanded among students drops from 100 to 90. Among casual readers, quantity demanded drops from 80 to 40.

  Objective questions- managerial economics

When a employee declares that he consider to quit, say next month, the threat of being fired has no bite. The employee  may find it in his interest to shirk.

  Mtv and nickelodeon down to 12 to 18 percent at nbc and abc

television channel operating profits vary from as high as 45 to 55 percent at mtv and nickelodeon down to 12 to 18

  Explain-conservationists want to save too many spotted owls

Consider this statement: “Conservationists want to save too many spotted owls.” Use graphical analysis accompanied by a concise narrative discussion.

  Find the expected value of each projects annual after tax

as a financial consultant you have contracted with wheel industries to evaluate their procedures involving the

  How would you explain to either the president or the ceo

At a recent meeting, the president and the CEO of Production, Inc. got into a heated argument about whether or not to shut down the company's plant in Flint, Michigan. The plant currently loses $50,000/month. The president of Production, Inc. argu..

  What is significance of the opportunity cost to the search

Explain: "without a market for pollution rights, dumping pollutants into the air or water is cost less; in the presence of the right to buy and sell pollution rights, dumping pollutants creates an opportunity cost for the polluter.

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