Quiz – Total Transaction Cost for Buying and Selling Stocks
Essentials of Investments
Bodie, Kane, and Marcus
12th Edition
Calculate the total cost of buying and selling stocks, including commissions, given the bid and ask prices.
Calculate the total cost of buying and selling stocks, including commissions, given the bid and ask prices.
Determine the turnover rate of a mutual fund by comparing the total assets bought and sold during a given period to the fund’s total assets outstanding.
Calculate the Value at Risk (VaR) of a portfolio with normally distributed returns, using the given expected return and standard deviation, and determine the potential loss at a specific confidence level.
Calculate the dollar values of positions in two risky securities, X and Y, given the expected rate of return and optimal weights, when investing a specified percentage of a complete portfolio in the risky portfolio and the remaining percentage in Treasury bills.
Determine the rate of return for an investor who initially invests a certain amount, borrows an equal amount from his broker to double the investment, and pays an interest rate on the loan. The stock is purchased at a specific price per share and sold after one year at a higher price per share.
Calculate the stop-buy order price for Rock Creek Fly Fishing Company shares when short-selling, aiming to limit potential losses to a specified amount. Provide a concise solution using the current share price and the desired loss limit.
Determine the total cost incurred by Barnegat Light during their initial public offering, considering the underwriter’s explicit fees and the change in share price from the offering to the immediate post-issue value.
Given the information — create journal entry’s for the nine transactions.
Given the marine company’s summarized data — prepare the trial balance, list accounts in order, and find the net income (loss).
Given trial balance, compute for the total assets, total liabilities, and net income or net loss of the company