An investor holds a portfolio consisting of one share of each of the following stocks: Stock Price BOY Price EOY Cash Dividend X $20 $10 $0 y $40 $50 $2 Z $100 $105 $4 For the I-year holding period, the portfolio return is closest to: A. 6.88%. B. 9.13%. C. 13.13%. D. 19.38%.

My calculations: HPR(X) = -50% HPR(Y) = 30% HPR(Z) = 9% HPR(portfolio) = (0,5*1,3*1,9) - 1 = - 0,29 ??? its none of the anwser but i couldn’t see where my calculation is wrong ??? can anyone help me out there plzzzzzzz (its the question 22 exam1 am - schewser)

actually I just found out that I have complicated the pb There is no need to calculate each stock HPR… the correct anwser is A : (10 + 52 + 149)/(20+40+100) - 1 = 6,88%

or X= (10-20+0)/20=-.5 Y= (50-40+2)/40= .3 z= (105-100+4)/100=.09 weights= total at the beggining= 20+40+100=160 20/160*-.5 +40/160*.3+ 100/160*.09=0688 A is the answer

nhung.tran Wrote: ------------------------------------------------------- > actually I just found out that I have complicated > the pb > > There is no need to calculate each stock HPR… > Thjat is correct. HPY is only need if there is more than 1 period in question. you only have one period.

6.8% HPR = EV + payments coming in / beginning value where BV = 160 and numerator = 10 + 52 + 109