Dollar Cost Averaging You have decided to invest $100 per month in the same stock for the next 3 months. January the stock was at $10 per share. February was a tough month and the stock was at $5.00 per share.March was a bit of a recovery and the stocks were purchased at $7.50 per share. a. What is the dollar gain/loss on your portfolio at the end of the quarter? b. What is the % gain/loss on your portfolio at the end of the quarter? c. Based on this information, what is your annualized gain/loss for the year?

The amount invested in the stock markets are subjected to risk and there may be loss or may be…

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Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

8th Edition

ISBN:9781285065137

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter8: Risk And Rates Of Return

Section: Chapter Questions

Problem 6DQ

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Dollar Cost Averaging

You have decided to invest $100 per month in the same stock for the next 3 months.
January the stock was at $10 per share. February was a tough month and the stock was at $5.00 per share.
March was a bit of a recovery and the stocks were purchased at $7.50 per share.

a. What is the dollar gain/loss on your portfolio at the end of the quarter?


b. What is the % gain/loss on your portfolio at the end of the quarter?


c. Based on this information, what is your annualized gain/loss for the year?

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You purchased 100 shares of stock at $30 per share. You paid a 2% commission on the purchase.
In 1 year you sold your shares for $35 per share and also paid a 2% commission on the sale.
During the year the stock paid a $1.70 per share dividend.

a. What is the current yield?

b. What is the annual yield?

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