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You have had a portfolio made up of three assets. For each of these three assets, pricing data are below: Price at the end of

  1. You have had a portfolio made up of three assets. For each of these three assets, pricing data are below:
Price at the end of Common stock A Preferred Stock B Coupon Bond C
year 0 $28 $100 $1,040
year 1 $30 $100 $1,050
year 2 $35 $102 $1,040
year 3 $41 $103 $1,050
year 4 (now) $44 $105 $1,060

The common stock pays a common dividend of $2 at the end of each year. The preferred stock pays a dividend of 5% based upon a face value of $100 at the end of each year. The bonds have a coupon rate of 5% and carry a current YTM of 4.5%. You bought 100 shares of Common Stock A, 50 shares of Preferred Stock B, and 3 Coupon Bonds C, all at the beginning of the period (Year 0).

1. What is your total dollar return on portfolio over the entire period? What is your holding period return on the portfolio over the entire period?

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