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Question 2: (30 Marks) Suppose you have purchased stocks on Amazon on January 1st, 2019 for $346.75. You received a dividend of $10.5 per share,
Question 2: (30 Marks) Suppose you have purchased stocks on Amazon on January 1st, 2019 for $346.75. You received a dividend of $10.5 per share, and the price is expected to rise to $400.15 by the end of March (3 months later), by which time you plan to sell those stocks. Calculate the following:
A. Dividend Yield (5 Marks)
B. Capital Gain/Loss (5 Marks)
C. Total Returns (5 Marks)
D. Annualized Returns. (10 Marks)
E. Describe the objectives and limitations of Investment Policy Statement briefly. (5 Marks)
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