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please help solve 3,4 and 5 Consider a one year investment in two Northwest stocks: Amazon and Costco. Suppose you buy one share of Amazon
please help solve 3,4 and 5
Consider a one year investment in two Northwest stocks: Amazon and Costco. Suppose you buy one share of Amazon and Costco at the beginning of the year at P = $27. PA-1 = $15 and then sell the shares at the end of the year for P = $32, Pc = $12 3. Suppose Costco pays a $3 per share dividend during the year. What is the annual simple total return on Costco? What is the annual dividend yield? 4. If you consider the investment in the two stocks a portfolio, what is the simple annual return on the portfolio? For this calculation, assume that Costco does not pay a dividend. (Hint: what is the initial investment and what are the investment shares?) 5. If you consider the investment in the two stocks a portfolio, what is the continuously compounded annual return on the portfolio? For this calculation, assume that Costco does not pay a dividendStep by Step Solution
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