Raj and Maya’s investment portfolio
• Common stock
o 500 shares of Corinthian Tools Manufacturing
o Quarterly dividends of $0.25, $0.25, $0.30, and $0.30 paid during the year
o Strong history of consistently paying dividends
o Expanding market shares offers moderate potential for capital gains
o Share price at beginning of year = $19.55
o Share price at end of year = $22.15
• Corporate bonds
o 12 bonds issued by Doric Highways Infrastructure
o Par value = $1,000
o Reach maturity in 2030
o Coupon rate = 8.750%
o ‘A’ bond rating by Fitch
o Market value of bond at beginning of year = 98.350
o Market value of bond at end of year = 96.500
• Mutual fund shares
o 400 shares in the Ionic Fund
o Balanced mutual fund
o Dividend distribution composition
▪ $0.75 investment income
▪ $0.60 capital gains
o NAV at beginning of year = $20.20
o NAV at end of year = $21.15
• Options
o 100 contracts on the stock of a pet food company
o Value of 100 contracts at beginning of year = $23,000
o Value of 100 contracts at end of year = $25,000

a) Calculate the holding period return for each of the 4 investments.

b) Calculate the holding period return for Raj and Maya’s entire portfolio.