An investor holds a portfolio consisting of one share of each of the follwing stocks Stock Price at Begin Price at End of Yr Cash Div X $20 $10 $0 Y $40 $50 $2 Z $100 $105 $4 For the 1-year holding period, the portfoli return is closet to: A. 6.88% B. 9.13% C. 13.13% D. 19.38 please help, i have stumbled over this
Portfolio beg value = 160 Portfolio End Value= 165 Cash Div = 6 165-160 +6/160 = 6.875 % Answer (A)
This isn’t a weighted average return, only holding period return so you just take the total portfolio beginning, end and payment measures: (105+50+10+4+2) / (100+40+20), minus 1 = 6.88% is that right?
Yes, thank you am a relieved man, i had no faint idea at all