Problem 1:1.One year ago you bought a stock for $36.48 a share. You recently received a dividend of $1.62 per share and sold the stock today for $40.18 a share. What is the dollar returns and percentage returns on this investment?2. One year ago you
Problem 1:1.One year ago you bought a stock for $36.48 a share. You recently received a dividend of $1.62 per share and sold the stock today for $40.18 a share. What is the dollar returns and percentage returns on this investment?2. One year ago you bought 480 shares of ABC Company for $28.32 a share. You recently received a dividend of $0.75 per share and sold the stock today for $35 a share. What is the dollar returns and percentage returns on this investment?Problem 2:A $100000 portfolio is invested in a risk-free security and two stocks. The beta of stock A is 1.80 while the beta of stock B is 0.20. One-half of the portfolio is invested in the risk-free security. How much is invested in stock A if the beta of the portfolio is 0.75?