Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

Suppose you short sell 100 shares

26/10/2021 Client: muhammad11 Deadline: 2 Day

Finance Ch 3 And Ch 4 Exercises

Chapter 3
12. Suppose you short-sell 100 shares of IBM, now selling at $200 per share. (LO 3-4)
a. What is your maximum possible loss?
b. What happens to the maximum loss if you simultaneously place a stop-buy order at $210?

14. DRK, Inc., has just sold 100,000 shares in an initial public offering. The underwriter’s
explicit fees were $60,000. The offering price for the shares was $40, but immediately
upon issue, the share price jumped to $44.

a. What is your best guess as to the total cost to DRK of the equity issue?
b. Is the entire cost of the underwriting a source of profit to the underwriters?

15. Dée Trader opens a brokerage account and purchases 300 shares of Internet Dreams at
$40 per share. She borrows $4,000 from her broker to help pay for the purchase. The
interest rate on the loan is 8%. (LO 3-4)

a. What is the margin in Dée’s account when she first purchases the stock?
b. If the share price falls to $30 per share by the end of the year, what is the remaining
margin in her account? If the maintenance margin requirement is 30%, will she
receive a margin call?

16. Old Economy Traders opened an account to short-sell 1,000 shares of Internet Dreams
from the previous question. The initial margin requirement was 50%. (The margin
a. What is the remaining margin in the account?
b. If the maintenance margin requirement is 30%, will Old Economy receive a margin call?
c. What is the rate of return on the investment?

17. Consider the following limit order book for a share of stock. The last trade in the stock
occurred at a price of $50. (LO 3-3)
Limit Buy Orders Limit Sell Orders
Price Shares Price Shares
$49.75 500 $50.25 100
49.50 800 51.50 100
49.25 500 54.75 300
49.00 200 58.25 100
48.50 600

a. If a market buy order for 100 shares comes in, at what price will it be filled?
b. At what price would the next market buy order be filled?
c. If you were a security,would you want to increase or decrease your inventory of
this stock?

Chapter 4
11. An open-end fund has a net asset value of $10.70 per share. It is sold with a front-end
load of 6%. What is the offering price?

13. The composition of the Fingroup Fund portfolio is as follows:
Stock Shares Price
A 200,000 $35
B 300,000 40
C 400,000 20
D 600,000 25
The fund has not borrowed any funds, but its accrued management fee with the portfolio
manager currently totals $30,000. There are 4 million shares outstanding. What is
the net asset value of the fund?

15. The Closed Fund is a closed-end investment company with a portfolio currently worth
$200 million. It has liabilities of $3 million and 5 million shares outstanding. (LO 4-3)

a. What is the NAV of the fund?
b. If the fund sells for $36 per share, what is its premium or discount as a percent of NAV?

16. Corporate Fund started the year with a net asset value of $12.50. By year-end, its NAV
equaled $12.10. The fund paid year-end distributions of income and capital gains of
$1.50. What was the rate of return to an investor in the fund?

22. The New Fund had average daily assets of $2.2 billion in the past year. The fund sold
$400 million and purchased $500 million worth of stock during the year. What was its
turnover ratio?

24. You purchased 1,000 shares of the New Fund at a price of $20 per share at the beginning
of the year. You paid a front-end load of 4%. The securities in which the fund
invests increase in value by 12% during the year. The fund’s expense ratio is 1.2%. What
is your rate of return on the fund if you sell your shares at the end of the year?

27. Suppose that every time a fund manager trades stock, transaction costs such as commissions
and bid–ask spreads amount to .4% of the value of the trade. If the portfolio turnover
rate is 50%, by how much is the total return of the portfolio reduced by trading
costs?

28. You expect a tax-free municipal bond portfolio to provide a rate of return of 4%. Management
fees of the fund are .6%. What fraction of portfolio income is given up to fees?
If the management fees for an equity fund also are .6%, but you expect a portfolio return
of 12%, what fraction of portfolio income is given up to fees? Why might management
fees be a bigger factor in your investment decision for bond funds than for stock funds?
Can your conclusion help explain why unmanaged unit investment trusts tend to focus
on the fixed-income market?

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

Finance Homework Help
Homework Master
24/7 Assignment Help
Homework Guru
Custom Coursework Service
Top Writing Guru
Writer Writer Name Offer Chat
Finance Homework Help

ONLINE

Finance Homework Help

I reckon that I can perfectly carry this project for you! I am a research writer and have been writing academic papers, business reports, plans, literature review, reports and others for the past 1 decade.

$25 Chat With Writer
Homework Master

ONLINE

Homework Master

I have assisted scholars, business persons, startups, entrepreneurs, marketers, managers etc in their, pitches, presentations, market research, business plans etc.

$41 Chat With Writer
24/7 Assignment Help

ONLINE

24/7 Assignment Help

I have read your project details and I can provide you QUALITY WORK within your given timeline and budget.

$38 Chat With Writer
Homework Guru

ONLINE

Homework Guru

I find your project quite stimulating and related to my profession. I can surely contribute you with your project.

$18 Chat With Writer
Custom Coursework Service

ONLINE

Custom Coursework Service

I have read your project description carefully and you will get plagiarism free writing according to your requirements. Thank You

$20 Chat With Writer
Top Writing Guru

ONLINE

Top Writing Guru

I am a professional and experienced writer and I have written research reports, proposals, essays, thesis and dissertations on a variety of topics.

$21 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

Snaps the original yo mama joke book stephan dweck - Mcminn bridge club amersham - Enthalpy formation of magnesium oxide - City of golden ballot question 2e - Bible (MUST be able to download book!!!!!) - Melton library opening hours - Ieee pami impact factor - Cpa australia important dates - Asian journal of control template - PPT(Team Management) - Readworks abolition fanaticism in new york answer key - Client success story template - G scan 2 key programming - Module 1: Discussion Forum - 192.168 o 1 optus - Begin with the end in mind - Hip hop's betrayal of black women - Authors views and values - Statistics - Rad advanced foundation port de bras - 896 eglinton ave e bed bugs - Dau test and evaluation level 1 - Discussion - Reflection on Achievement of Outcomes - Pushrod suspension design calculations - Threaded 5 - Presented below are three independent situations - Research on IOT - Cwv ethical dilemma essay euthanasia - Standardize the given solution of sodium hydroxide volumetrically - 15.4 stone in pounds - The lottery analyzing the text questions - Paper - Internship weekly journal example - 50 ml volumetric pipette uncertainty - Gerry remember the titans - Pros and Cons Literature Assignment - Operations processes business studies - Digital forensics - BI: Week 5 Assignment - 52 foch street mowbray - Retail cuts of lamb - Armstrong axiom drywall trim - Gym management system php mysql source code - Framework my time our place - Why america is self segregating they say i say - Gezon and kottak culture 2nd edition - Mariana nos que iba a venir pronto. - Week 2 discussion law enforcement - Gibbs reflective cycle example leadership - Organizational behavior modification 5 steps - Yoohoo rolling on the floorboard - Bsbfim601 - Exposition of cask of amontillado - Best paper airplane for distance and speed - NURS6050 - In the blink of an eye walter murch pdf - Stop surviving start fighting kmart - Dread hollow bolt wow - Does apple juice contain monosaccharides - Introducing buddhism prebish 2nd edition pdf - Mat 211 asu - Operation anaconda battle analysis - Ap lang rhetorical analysis essay rubric - Chapter 6 pacific trails resort - Pensioner finance car yards brisbane - Ipt multiple choice questions - Poems about the four elements - National australia bank merchant services - Judith lorber believing is seeing - Http mpsweb intranet mps - Report writing on fire broke out - DNA - Bailey pro deck work platform - What is my job seeker id - Netgear jfs516 manual pdf - 365 - Camshaft position sensor bank 2 - Chotukool competitors - Persuasive speech on eating breakfast - Academic resources and strategies - In a typical company organizational model middle managers ____ - Sixes and threes cowl pattern - Nursing Discussion - Shadow health focused exam abdominal pain esther park - Take the learning style self-assessment. Write at least 200 words describing the results, how you learn best, and how you will modify your study techniques to fit your learning style. - 180k resistor color code - My hr education queensland - Hooke's law simulation lab answers - Mental illnesses in one flew over the cuckoo's nest - Which of the following is not a function of money - Book summary - Battle of salamis timeline - So mexicans are taking jobs from americans poem - Web research design attachment - Stand by me gordie - Six methods used in physical examination - A store sold a case of scented candles for 17.85 - Theory of metal forming - Experiment 2 effect of chemical germicides on bacterial growth