USE Weighted Activity Activity

John invests $900 per month into his IRA. Each $900 buys shares of Global mutual fund. For the last 3 months, he purchased $900 worth of Global at prices of $10, $9, & $15. What is his WEIGHTED average purchase price of the mutual fund over the last 3 months?

• $10.80

• $11.00

• $9.60

• $14.25

Jill invests $1,000 per month into her IRA. Each $1,000 buys shares of Beta mutual fund. For the last 5 months, she purchased $1,000 worth of Beta at prices of $40, $25, $20, $40 & $50. What is his WEIGHTED average purchase price of the mutual fund over the last 5 months?

• $30.50

• $31.25

• $40.22

• $28.01

Lyss invests $200 per month into her IRA. Each $200 buys shares of PHS mutual fund. For the last 7 months, she purchased $200 worth of PHS at prices of $40, $25, $20, $40, $50, $10 and $100. What is his WEIGHTED average purchase price of the mutual fund over the last 7 months?

• $30.50

• $28.00

• $22.00

• $21.88

Let's say that the current risk-free rate is 3%, and the the market is expected to return 10% next year. You are interested in determining the return that Nick's Sporting Goods (NSG) will have next year. You have determined that its beta value is 1.4. What is the required (expected) return for NSG next year?

• 10.2%

• 12.8%

• 15.6%

• 22.4%

Let's say that the current risk-free rate is 6%, and the the market is expected to return 6% next year. You are interested in determining the return that Paige's Salon (PS) will have next year. You have determined that its beta value is 1.1. What is the required (expected) return for NSG next year?

• 0%

• 6%

• 3.4%

• 8%

Let's say that the current risk-free rate is 2%, and the the market is expected to return 12% next year. You are interested in determining the return that Cartman's Pizza Palace (CPP) will have next year. You have determined that its beta value is 1.5. What is the required (expected) return for CPP next year?

• 17.5%

• 17%

• 16%

• 8%