1. (?Holding-period dollar gain and return?) Suppose you purchased 10 shares of Disney stock for ?$23.34 per share on May? 1, 2012. On September 1 of the same? year, you sold 8 shares of the stock for ?$20.58. Calculate the? holding-period dollar gain for the shares you? sold, assuming no dividend was? distributed, and the? holding-period rate of return.
a. The holding-period dollar gain for the shares you sold is $ Enter a negative number if it is a loss. $(Round to the nearest? cent.)
b. The? holding-period rate of return is ?%. (Round to two decimal? places.)
?2. (Capital asset pricing model?) MFI Inc. has a beta of 1.31. If the expected market return is 13.0 percent and the? risk-free rate is 5.5 percent, what is the appropriate required return of MFI? (using the? CAPM)? Using the? CAPM, the appropriate required return of MFI is ?%. (Round to two decimal? places.)
3. (Nonannual compounding using a calculator?) Hank Schrader plans to invest ?$100 at the end of each week for 4 years into an account with an APR of 8.5 percent compounded weekly. He will use this money as a down payment on a new home at the end of the 4 years. How large will his down payment be 4 years from? today? After 4 years, Hank will have ?$?(Round to the nearest? cent.)