Question: Calculating Returns (CFA1) Looking back at Problem 12 , suppose the call money rate is 5 percent and your broker charges you a spread of

Calculating Returns (CFA1) Looking back at Problem 12, suppose the call money rate is 5 percent and your broker charges you a spread of 1.25 percent over this rate . you hold the stock for six month and sell at a price of $65 per share. The company paid a dividend of $.25 per share the day before you sold your stock . what is your total dollar returnfrom this investment ?

what is your effective annual rate of return ?

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