John Stewart has recently joined ABC
in the capacity of an investment advisor. As a way to attract additional
clients, John has asked for your help in preparing some educational material
for a seminar taking place later this month.
He has asked you put together a
report on the following investments and calculate the returns of these
investments (including dollar values and percentages) to illustrate how they
Perform the 5 calculations
listed below:Show all of your work as well
as any formulas that you used.If you used MS Excel to arrive
at your answers, then you must provide an explanation of your

A stock
that does not pay a dividend of which you buy 100 shares for $25.00 per share
and sell the 100 shares for $27.50 per share a year later. You pay the $50.00
commission when you sell the securities.

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A 5-year
bond that you purchase for $1,000 pays a 6% yearly rate. It is paid
semiannually, and you hold the bond until maturity.

current yield on a bond that is priced at $89 has a 6% coupon.

yield-to-maturity (YTM) on a 7.25% ($1,000 par value) bond that has 10 years
remaining to maturity, currently trading in the market at $825.

holding period return (HPR) for 1,000 shares of a no-load mutual fund
currently selling at an NAV of $11, purchased a year ago at an NAV of $10.50
per share, including $300 of distributed investment income dividends and
capital gains dividends of $350.

Next, answer the following
questions:Explain systematic and
unsystematic (also known as nonsystematic) risk.What are the different types
of investments a person can make?Explain a stock’s beta
coefficient and how it ties into systematic versus unsystematic risk.What are the
differences between the various types of bonds?What do bond ratings indicate,
and what 2 major agencies are in charge of assigning these ratings?Compile your calculations, MS
Excel tables and explanations (if applicable), and your responses to
the 5 points above into a single Word document.


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