7 A) Suppose you buy stock at a price of $82 per share. Three months later, you...

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Finance

7
A) Suppose you buy stock at a price of $82 per share. Threemonths later, you sell it for $88. You also received a dividend of$0.50 per share. What is your annualized return on this investment?(Do not round intermediate calculations. Enter your answeras a percent rounded to 2 decimal places.)
B) You just sold short 950 shares of Wetscope, Inc., a fledglingsoftware firm, at $72 per share. You cover your short when theprice hits $66.00 per share one year later. If the company paid$0.46 per share in dividends over this period, what is your rate ofreturn on the investment? Assume an initial margin of 55 percent.(Do not round intermediate calculations. Enter your answeras a percent rounded to 2 decimal places.)
Rate of return:

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A Purchase value per share 82 Period of holding 3 months Sale Proceeds per share 88 Dividend per share 050 Return on investment per 3 months Sale Proceeds Dividend Purchase Cost Purchase Cost 88 05 82 82 7927 per 3 monthsquarter Annualized Return 1rn 1 where r is the rate of return per See Answer

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