An investor purchases 50 shares of stock today, and sells all 50 shares one year from now.

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An investor purchases 50 shares of stock today, and sells all 50 shares one year from now. The bid and ask prices (per share) are as follows:

The broker's commission is 0.2% per transaction.

Calculate the investor's total effective one-year return, ignoring the effect of interest and dividends?

Related Book For answer-question

Statistics For Engineers And Scientists

ISBN: 9780073376332

3rd Edition

Authors: William Navidi

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Posted Date: Apr 03, 2023 11:51 PM

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An investor purchases 50 shares of stock today, and sells all 50 shares one year from now.

Question:

Today One Year from Now Bid 105.50 Ask 106.00 113.90 114.70 Today One Year from Now Bid 105.50 Ask 106.00 113.90 114.70

Expert Answer:

share x ask price x share x bid price x 3 ... View the full answer

Statistics For Engineers And Scientists

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