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Question one. Suppose you invested in Anglogold shares and Calbank shares and you want to determine the return on these two shares that you owned

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Question one. Suppose you invested in Anglogold shares and Calbank shares and you want to determine the return on these two shares that you owned during 2020. At the beginning of the year, Anglogold shares traded for $35.75 per share, and Calbank shares was valued at $3.30. During the year, Anglogold paid dividends of $2.75, whereas Calbank shareholders received dividends of So.55 per share. At the end of the year, Anglogold shares was worth $39.12 and Calbank shares was sold for $7.24. Required: Calculate the annual rate of return for each share. Question two. Alex Abasi, a financial analyst for Kaam Business Partners, wishes to estimate the rate of return for two similar-risk investments, K and B. Abasi's research indicates that the immediate past returns will serve as reasonable estimates of future returns. A year earlier, investment K had a market value of $20,000; investment B had a market value of $55,000. During the year, investment K generated cash flow of $1,500 and investment B generated cash flow of $6,800. The current market values of investments K and B are $21,000 and $55,000, respectively. a. Calculate the expected rate of return on investments K and B. b. Assuming that the two investments are equally risky, which one should Abasi recommend? (2.75 +3.37): 35.75 35.73 | 4187-15.15 735 75 16.12) = 35.75 6-12

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