3. If you buy a stock at $32 and sell it 4 years later at $45,...

Question

Question

business finance

Answer 1

Answer #1

Solution: 40.625% HPY=(Sale price-buy price) buy price (45-32)/32 8.90% Annualized HPY = (1+HPY)^(1/n)-1 (1+0.40625)^(1/4)-1

Answer 2

Similar Homework Help Questions

3. If you buy a stock at $32 and sell it 4 years later at $45,...

3. If you buy a stock at $32 and sell it 4 years later at $45, what is your annual HPY? (5) 4. Bonus: If the stock in Problem #3 paid an annual dividend of $1, what would be the rate of return? (5)
If you bought a stock for $45 dollars and could sell it fifteen years later for...

If you bought a stock for $45 dollars and could sell it fifteen years later for three times what you originally paid. What was your return on owning this stock? Future Value (FV) 135 Present Value (PV) 45 Number of years (n) 15 Answer- I need this answered using the Insert Function and please show the functions of each cell
What is the holding period return buy stock at $32 sell it one year later at...

What is the holding period return buy stock at $32 sell it one year later at 30 and receive a dividend of 1.25

Suppose you buy stock at a price of $33 per share. 4 months later, you sell...

Suppose you buy stock at a price of $33 per share. 4 months later, you sell it for $38. You also received a dividend of $0.64 per share. What is your annualized percentage return on this investment?
20. You buy a stock for $55 today, and sell the stock one year later for...

20. You buy a stock for $55 today, and sell the stock one year later for $54, during which time a $2 dividend is paid. What is your nominal return on this stock? Bonus (+1): If inflation is 3%, what is your real rate of return (Change in purchasing power)?
20. You buy a stock for $55 today, and sell the stock one year later for...

20. You buy a stock for $55 today, and sell the stock one year later for $54, during which time a $2 dividend is paid. What is your nominal return on this stock? Bonus (+1): If inflation is 3%, what is your real rate of return (Change in purchasing power)?

To trade in stocks, a brokerage commission of 1% of the stock price is charged. However, if you buy the stock and later sell it, or you short sell the stock and later buy, assume that you pay the brokerage commission only one time at the beginning. If the

To trade in stocks, a brokerage commission of 1% of the stock price is charged. However, if you buy the stock and later sell it, or you short sell the stock and later buy, assume that you pay the brokerage commission only one time at the beginning. If the stock price is $75 and the continuously compounded interest rate is 5%, what is arbitrage-free price range of the nine-month forward price?A. $76.15 and $77.24B. $76.89 and $78.84C. $77.08 and $78.64D. ...
You buy a stock at $25 and sell it 6 months later for $22. If your...

You buy a stock at $25 and sell it 6 months later for $22. If your HPR was 0%, how many dollars in dividends must you have received while holding the stock?
20. You buy a stock for $55 today, and sell the stock one year later for $54, during which time a $2 dividend is pa...

20. You buy a stock for $55 today, and sell the stock one year later for $54, during which time a $2 dividend is paid. What is your nominal return on this stock? Bonus (+1): If inflation is 3%, what is your real rate of return (Change in purchasing power)?

If you buy a bond with 8 years remaining to maturity and sell it a year...

If you buy a bond with 8 years remaining to maturity and sell it a year later, what will your rate of return be if the Yield to maturity at the time you buy the bond is 6.5% and 7.0% when you sell it. The bond pays a coupon rate of 5%.