FIN 315 Pop Quiz 1.docx - FIN 315 Pop Quiz 1-3 1 Suppose that an investment of yours rises by 25 in yr 1 falls by 25 yr 2 rises by 35 yr 3 and falls by

# FIN 315 Pop Quiz 1.docx - FIN 315 Pop Quiz 1-3 1 Suppose...

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FIN 315 Pop Quiz 1-3 1. Suppose that an investment of yours rises by 25% in yr 1, falls by 25% yr 2, rises by 35% yr 3, and falls by 35% yr 4. What is your total return for the four-year period? 2. Suppose that an investment of yours rises by 25% in yr 1, falls by 25% yr 2, rises by 35% yr 3, and falls by 35% in yr 4. What is your average annual return? 3. Suppose that you purchased 100 shares of Vodafone twenty years ago for \$40 per share. Since then, they’ve had the following four stock splits: 2:1. 3:2, 3:2, and 3:1. You haven’t sold any of the stock. Vodafone is currently selling for \$16 per share. What is the split adjusted price that you paid for the stock? 4. Suppose that you purchased 100 shares of Vodafone twenty years ago for \$40 per share. Since then, they’ve had the following four stock splits: 2:1. 3:2, 3:2, and 3:1. You haven’t sold any of the stock. Vodafone is currently selling for \$16 per share. What is the Average Annual Return for the twenty year period?

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• James Felton

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