David owns a portfolio that consists of both common stocks and bonds. David's portfolio worth $264,000 at the first day of year 2015, yet the value has decreased to $250,000 at the end of year 2015. Assume there is only one transaction has been made in year 2015. He sold one of the stocks which had a beginning value of $26,300 for $31,500. Moreover, he also received a total dividend of $12,500 during the year. Calculate the holding period return (HPR) on David's portfolio during the year ended 31st December 2015.
David owns a portfolio that consists of both common stocks and bonds. David's portfolio worth $264,000 at the first day of year 2015, yet the value has decreased to $250,000 at the end of year 2015. Assume there is only one transaction has been made in year 2015. He sold one of the stocks which had a beginning value of $26,300 for $31,500. Moreover, he also received a total dividend of $12,500 during the year. Calculate the holding period return (HPR) on David's portfolio during the year ended 31st December 2015.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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David owns a portfolio that consists of both common stocks and bonds.
David's portfolio worth $264,000 at the first day of year 2015, yet the value has decreased to $250,000 at the end of year 2015.
Assume there is only one transaction has been made in year 2015. He sold one of the stocks which had a beginning value of $26,300 for $31,500.
Moreover, he also received a total dividend of $12,500 during the year.
Calculate the holding period return (HPR) on David's portfolio during the
year ended 31st December 2015.
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