An investor bought 1,000 shares of Citigroup in January 2009 for $3.55 a share. She sold all

Question:

An investor bought 1,000 shares of Citigroup in January 2009 for $3.55 a share. She sold all of her shares in December 2009 for $3.31 a share.

a. What annual rate of return did the investor earn?

b. Use the CPI information from Exercise 40 to compute the inflation rate for 2009.

c. What is the investor's real rate of return?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Business Statistics Communicating With Numbers

ISBN: 9780078020551

2nd Edition

Authors: Sanjiv Jaggia, Alison Kelly

See More Books

Question Posted: Dec 20, 2016 09:56 AM

See More Questions

An investor bought common stock of Dell Inc. on three occasions at the following prices. Date ...... Price Per Share January 2009 ... $10.34 July 2009 .... $13.98 December 2009 ... $14.02 a. What is...
An investor bought common stock of Microsoft Corporation on three occasions at the following prices. Calculate the average price per share at which the investor bought these shares. Date January 2009...
A stock market investor has $500 to spend and is considering purchasing an option contract on 1,000 shares of Apricot Computer. The shares themselves are currently selling for $28.50 per share....
In December 2014, Shire Computer's management establishes the 2015 predetermined overhead rate based on direct labor cost. The information used in setting this rate includes estimates that the...
The Public Service Commission of State X issued a regulation completely banning all advertising that promotes the use of electricity by any electric utility company in State X. The commission issued...
Biales Waste Disposal, GmbH, headquartered in the industrial city of Dusseldorf, Germany, operates seven specially-constructed semitrailers and cabs for commercial long-distance hauling of...
What is the difference between official and floating foreign exchange rates? Does the United States have floating exchange rates? AppendixLO1
Glen and Diane Flood owned and operated Floods Auto Parts and Glenwood Wrecker Service in Chatsworth, Georgia. The companies offerings to the local market included the sale of wholesale and retail...
Please answer problem #4, SHOWING ALL WORK ACCORDINGLY ON ALL PARTS. Thank you! The following information relates to Sheffield Corp. for the year 2022. $50,880 Advertising expense $1.910 Retained...
A battery pack with a total weight of 120 kg is tested on a shock testing machine. The value of the shock is 30g and is applied within a duration of 15 mS on a Sine Curve. a. Draw the acceleration...
Consider the following consumer price index and producer price index for 2006-2009. a. Use the relevant price index to deflate the data on net revenue of Citigroup, given in Exercise 39. b. Use the...
The adjusted closing prices of Wendy's/Arby's Group, Inc., for the first three months of 2008 are presented in the following table. Also included in the table is the corresponding consumer price...
Minneapolis Federal Reserve Bank economist Edward Prescott estimates the elasticity of the U.S. labor supply to be 3. Given this elasticity, what would be the impact of funding the Social Security...
Consider the following account balances (in thousands) for the Shaker Corporation In the Dec 31.2021 Cash $200,000 and Capital $2,000,000 and Retained earnings $1,500,000 The balances of raw...
Unless otherwise stated, assume gravitational acceleration g = 9.81 m/s and the density of water to be 1000 kg/m. Unless otherwise stated, give all numerical answers to 3 significant figures, such as...
The purpose of this installment is to classify stock, bond, and mutual fund investments, explore tools for their evaluation and select these securities based on your investment philosophy and goals....
Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three services are provided...
Caldwell (2003) explores differences between the roles of leaders and managers. "Leaders...envision, initiate, or sponsor strategic change of a far-reaching or transformational nature. In contrast,...
Which parts of the basic single-cycle datapath are used by all of these instructions? Which parts are the least utilized? This exercise explores some of the tradeoffs involved in pipelining, such as...
What is your opinion of advertising awards, such as the Cannes Lions, that are based solely on creativity? If you were a marketer looking for an agency, would you take these creative awards into...
The accompanying data file lists monthly data on vehicle miles traveled in the U.S. (in millions). For cross-validation, let the training and the validation sets comprise the periods from Jan-12 to...
The accompanying data file lists quarterly data on median house prices in the West Census region. For cross-validation, let the training and the validation sets comprise the periods from 2010:01 to...
The accompanying data file contains quarterly data on expenses (in $1,000s) over five years. For cross-validation, let the training and the validation sets comprise the periods from 2008:01 to...
Jennifer purchased a home for $1,000,000 in 2016. She paid $200,000 cash and borrowed the remaining $800,000. This is Jennifer's only residence. Assume that in year 2024, when the home had...
business plan describing company with strengths and weaknesses. Any gaps in plan. Recommendations for improvement of the plan.
You wish to buy a car today for $35,000. You plan to put 10% down and finance the rest at 5.20% p.a. for six years. You will make equal monthly payments of $_______.

An investor bought 1,000 shares of Citigroup in January 2009 for $3.55 a share. She sold all

Question:

Step by Step Answer:

a The rate of return is b We use CPI to compute the ...View the full answer

Business Statistics Communicating With Numbers

Students also viewed these Statistics questions