Solution-Identify the expected return

Identify the expected return

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Reference no: EM132828563

Problem 1.

You plan to buy a common stock and hold if tor one year. You expect to receive both ?150 and ?260 form the sale of the stock at the end of the year. How much will you pay for the stock, if you want to

a. Have a return of 8%

b. A return of 10%

c. A return of 15%

Problem 2:

You bought 400 shares of Heavy Metal Inc. at ?300 per share over the year, you received ?75 per share in dividends. IF the shares were sold for ?330 at the end of the year, what was your peso return? And percentage of return.

Problem 3:

Given six years of percentage return of Stock A and Stock B, identify the expected return, and risk of each instrument. Assume that each year, has equal chances of reoccurrence.

a. Which of the two stocks is riskier? Why?

b. Which of the stocks is expected to yield a higher return? Why?

c. Where will you invest?

Reference no: EM132828563

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Identify the expected return

Reference no: EM132828563

Reference no: EM132828563

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