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Consider the portfolio of two investments A and B A B Purchase Price $1000 $1000 Dividends Received Ist Quarter $10 0 2nd Quarter $20 0
Consider the portfolio of two investments A and B A B Purchase Price $1000 $1000 Dividends Received Ist Quarter $10 0 2nd Quarter $20 0 3rd Quarter $20 0 4th Quarter $30 $120 Answer the following questions accordingly: 1. What is the yearly total return on each investment. 2. If the investor can sell A at the end of the year for $1100, and sell B for $960. What is the total return on A and on B. 3. What is the rate of return on A and on B. 4. Which investment should the investor buy A or B.
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