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An investor purchases 50 shares of stock today, and sells all 50 shares one year from now. The bid and ask prices (per share) are
An investor purchases 50 shares of stock today, and sells all 50 shares one year from now. The bid and ask prices (per share) are as follows:
The broker's commission is 0.2% per transaction.
Calculate the investor's total effective one-year return, ignoring the effect of interest and dividends?
Today One Year from Now Bid 105.50 Ask 106.00 113.90 114.70
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share x ask price x share x bid price x 3 ...
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