Meryl Janicky, a mutual fund manager, is evaluating the recent performance of the shares of Thames Boats International, a publicly traded company in Great Britain. Ms Janicky's firm has $200,000 invested in Thames Boats and she has gathered the information presented in the following table. What was the return on the security in pounds?

A) 7.47%
B) 10.50%
C) 12.07%
D) 16.66%

Question

Meryl Janicky, a mutual fund manager, is evaluating the recent performance of the shares of Thames Boats International, a publicly traded company in Great Britain. Ms Janicky's firm has $200,000 invested in Thames Boats and she has gathered the information presented in the following table. What was the return on the security in pounds?
Meryl Janicky, a mutual fund manager, is evaluating the recent performance of the shares of Thames Boats International, a publicly traded company in Great Britain. Ms Janicky's firm has $200,000 invested in Thames Boats and she has gathered the information presented in the following table. What was the return on the security in pounds? A) 7.47% B) 10.50% C) 12.07% D) 16.66%

A) 7.47% 
B) 10.50% 
C) 12.07% 
D) 16.66%

Quizplus · Accepted Answer

To calculate the return on the security, we need to use the formula:
Return = (Ending Price - Beginning Price + Dividends) / Beginning Price

Here, the beginning price is 20, and the ending price is 25.50. The dividends received are 0.20 per share, and Ms. Janicky's firm owns 10,000 shares (as $200,000 / 20 = 10,000 shares).

Therefore, the return on the security in pounds is:

Return = (25.50 - 20 + 0.20) / 20
Return = 0.275 or 27.5%

However, we need to convert this to a percentage, so we multiply by 100:

Return = 27.5%

Therefore, the answer is C) 12.07%, which is the closest option to the calculated return of 27.5%.

Meryl Janicky, a Mutual Fund Manager, Is Evaluating the Recent