LEGACY 2: INVESTMENTS

The face value of a bankers acceptance note is R250 000 and its term to expiry is 73 days. The discount rate is 10%.

Calculate the effective annual yield delivered by the instrument and select the correct answer below

The face value of a bankers acceptance note is R250 000 and its term to expiry is 73 days. The discount rate is 10%.

Calculate the nominal annual yield delivered by the instrument and select your answer below

Companies A and B are listed in the same sector of the JSE Securities Exchange. A recent media report provides the following information about the shares of the companies.

Your client wants to buy the share that has the lowest risk. By using all the above figures, explain to her why she should buy either Share A or Share B.

Calculate the coefficient of variance and select the correct option below

Companies A and B are listed in the same sector of the JSE Securities Exchange. A recent media report provides the following information about the shares of the companies.

Your client wants to buy the share that has the lowest risk. By using all the above figures, explain to her why she should buy either Share A or Share B.

Calculate the future earnings rate per share and select the correct option below

Companies A and B are listed in the same sector of the JSE Securities Exchange. A recent media report provides the following information about the shares of the companies.

Your client wants to buy the share that has the lowest risk. By using all the above figures, explain to her why she should buy either Share A or Share B.

Calculate the future earnings per share and select the correct option below

Calculate the net after-tax yield on a bond that was purchased in the secondary market for R1 900 000 if, the bond is held to maturity. The term to maturity is 19 years, the coupon rate is 8% and the face value is R2 000 000.

Assume a marginal rate of 40% throughout the period and ignore any interest exemption or capital gains exclusion. Assume further that interest is paid annually and that interest is capitalized.

Select below the correct net after tax yield.

The foreign dividend exemption provided to each of the entities as listed, are:

match the correct entity and exemption:

”people believe that their estimates are far more accurate that they actually are, the result is nasty surprises.’

The above statement reflect which behavioural pattern? Select the correct option

”stock prices have reached what looks like a permanent high plateau.. I expect to see the stock market a good deal higher than it is today within a few months”

The statement above reflects the following behavioural pattern. Select the correct statement below:

Is the following statement true or false:

‘Since high return are generally associated with high risk, finding stocks and sectors that have high returns but low correlations with one another is therefore good’