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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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