Question
7 A) Suppose you buy stock at a price of $82 per share. Three months later, you sell it for $88. You also received a
7
A) Suppose you buy stock at a price of $82 per share. Three months later, you sell it for $88. You also received a dividend of $0.50 per share. What is your annualized return on this investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
B) You just sold short 950 shares of Wetscope, Inc., a fledgling software firm, at $72 per share. You cover your short when the price hits $66.00 per share one year later. If the company paid $0.46 per share in dividends over this period, what is your rate of return on the investment? Assume an initial margin of 55 percent. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Rate of return:
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