BFF2701 Equity Markets Tutorial 3 QuestionsJava

Java Python BFF2701 Equity Markets

Tutorial 3 Questions

Question 1

The price and dividends of stock A are as follows:

Year	Year-end stock price	Dividends through the year
2019	60	2
2020	65	0
2021	63	2
2022	62	2< BFF2701 Equity Markets Tutorial 3 QuestionsJava /span>
2023	70	2
2024	71	2

a.    Suppose you purchased the stock at the end of 2019 and sold it at the end of 2021. What is your rate of return?

b.   Suppose you purchased the stock at the end of 2019 and sold it at the end of 2024. What is your rate  of return?  Decompose  your returns into returns from capital gain and returns from dividends

Question 2

Link each sentence from “a” to “d” to describe each institutional investor

(1) Pension funds

(2) Private equities

(3) Hedge funds

(4) High-frequency traders

a.   Most short-selling is done by this institutional investor.

b.   The majority of these institutional investors aim to increase firm value by acquiring and changing the firm’s operations.

c.   They decrease the latency by colocation

d.   It can be largely classified as defined benefits and defined contributions