Simone is considering to move funds from money market account to capital market. Her broker recommends three investments.

Investment 1: Corporate Bond A It has a face value of $100,000 with a 5.75% p.a. coupon rate. Coupon is paid semi-annually. The bond will mature in five years. Yield-to-maturity (YTM) is 6.5% p.a.

Investment 2: Preference Share B It has a face value of $100 with a 10% p.a. preference dividend rate. Cost of equity is 9% p.a.

Investment 3: Common Share C It pays annual dividends and a $4 dividend was paid yesterday. As per the market consensus, the companys dividend is expected to decrease by 5% per annum in the first three years, then grow by 20% for next two years. After that, the dividend growth rate will become 5% p.a. constant till foreseeable future. Cost of equity is 15% p.a.

b. Suppose Simone decides to create a portfolio by purchasing 1 corporate bond A, 1,000 preference share B and 3,000 common share C. After one month, their market prices become Investment Market Price Corporate Bond A $97,803.96 Preference Share B 110.39 Common Share C 38.53 How much is her investment return over the month? Assume no dividends or coupons paid during the month