Question
a) The prices for the Gas Corporation for the second quarter of 2021 are given below. The price of the stock on April 1, 2021
a) The prices for the Gas Corporation for the second quarter of 2021 are given below. The price of the stock on April 1, 2021 was $130. Find the holding period return for an investor who purchased the stock on April 1, 2021 and sold it the last day of June 2021.
Month End of 2021 | Price ($) |
April | 125.00 |
May | 138.50 |
June | 132.75 |
b) You purchased 500 shares of A.M.J. Ltd common stock one year ago for $50 per share. You received a dividend of $2 per share today and decide to take your profits by selling at $54.50 per share. Estimate your amount of return in $ and holding period return in percentage.
c) Differentiate between systematic and unsystematic risk using a relevant diagram.
d) Discuss the method is used to measure a firm's market risk.
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