Q1: You own shares in Yahoo that were purchased at a price of $21 per share. Mic

Question

Q1:

You own shares in Yahoo that were purchased at a price of $21 per share. Microsoft has offered to purchase Yahoo and buy your shares at a price of $33 per share. What will be your return if you tender your shares to Microsoft and the deal is? completed?

A.57.14?%

B.60?%

C.54.29?%

D.40?%

Q2:

Amazon.com stock prices gave a realized return of 20?%, 15?%, ?15?%, and ?15?% over four successive quarters. What is the annual realized return for Amazon.com for the? year?

A. 5?%

B. ?0.3?%

C. ?0.47?%

D. ?0.34?%

Q3:

Q4:

Consider the following average annual returns Investment Small Stocks S&P; 500 Corporate Bonds Treasure Bonds Treasury Bills Average Return 23.2% 13.4% 7% 6.2% 4.7% What is the excess return for corporate bonds? A. 1.2% ? B. 4.6% OC. 0% D. 2.3%

Explanation / Answer

A1. A

Share purchased = $21 per share

Buy shares = $33 per share

Return = 33 - 21 = 12

=12/21 = 0.5714 or 57.14%

A2. B

Annual realised return = 1.2 × 1.15 × 0.85 × 0.85 = 0.99705

0.99705 - 1 = -0.00295 or -0.295% = - 0.3%

A3. D.

Excess return for corporate bonds = Avergae retun - treasury bill = 7 - 4.7 = 2.3%

A4. Ans is c -4.49%

Dividend Return cum dividend

33 1 33 1 3.03% 38 1 36 1 28 1 -4.49%

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.