Investment Fundamentals

Chapter 13 – Investment Fundamentals - Exercise For the two questions below, respond in the text-entry box with the correct answer from the options provided (A, B, C D); and describe the approach you took to calculate it. 1. Dollar Cost Averaging Share Price What is the average share price for the dollar-cost averaging strategy shown below? Regular Investment Share Price $250 $35 $250 $31 $250 $28 $250 $37 $250 $40 A. $34.20 B. $37.14 C. $33.66 D. $36.55 2. Rate of Return on Investment Gary purchased 250 shares of PAC stock for $37 per share and sold this same stock one year later for $44 per share. He paid commissions of $15 when he purchased the stock and $10 when he sold the stock. Dividends of $1.50 per share were paid during the year. The total rate of return on this investment was A. 22.98 percent. B. 22.70 percent. C. 18.92 percent. D. 19.32 percent