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Please Answer and explain 1. You purchased 1,000 shares of stock ABC for $127 per share and 300 shares of stock XYZ for $52 per
Please Answer and explain
1. You purchased 1,000 shares of stock ABC for $127 per share and 300 shares of stock XYZ for $52 per share exactly one year ago. During the year, stock ABC paid a $1.30 dividend per share and XYZ did not pay a dividend. The current stock prices are ABC-$141 per share and XYZ -$24 per share. Answer the following (showing all work): (a) Calculate the actual return on your investment in (i) ABC, (ii) XYZ and (iii) the portfolio over the last year. (b) Calculate (i) the dividend yield and(i) the percentage capital gain for the portfolio. (c) Calculate the real rate ofreturn on the portfolio if the inflation rate was 2%Step by Step Solution
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