Question
Suppose you created a portfolio exactly 5 years ago of the following assets: ASSETS NUMBER PRICE Common Stock A pays a constant dividend of $.30
Suppose you created a portfolio exactly 5 years ago of the following assets:
ASSETS | NUMBER | PRICE |
Common Stock A pays a constant dividend of $.30 per quarter | 245 shares | $28.15 |
Coupon Bonds B - CR = 7.85%; YTM = 8.15% | 25 bonds | $1131.24 |
Preferred Stock C 2% Dividend Yield, $80 face value | 80 shares | $76.12 |
Zero Coupon Bonds D Face value = $1,000 | 40 bonds | $872.35 |
Today, assets are selling as follows:
A = $33.67
B = $997.15
C = $84.25
D = $831.15
A) What is the dollar return on your portfolio over the entire 5 year period? (15 pts)
Dollar Return _____________
B) What is the percentage return (HPR) of the portfolio over the entire 5-year period? (10 pts)
Percentage Return (HPR) _______________
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