1. Using a format similar to the one illustrated in this chapter, show the results of Roses...
Question:
2. Calculate the following: (a) the portfolios dollar gain or loss, (b) the rate of return for the six-month period, (c) the annualized rate of return. Evaluate the portfolios performance. Do you have any advice for Rose? Explain.
Rose Geisler, a college graduate in electrical engineering, has a good position with a major electronics firm. Her current annual salary is $65,000, and, since Rose is single with no financial obligations, she plans to invest all her savings (around $11,000) in common stocks. Rose has done some research on security selection, and she feels capable of picking her own stocks. At present, she likes the technology sector and also thinks companies in the auto industry will do well.
At the advice of her former personal finance instructor, Rose has decided to have a trial run before she actually invests. So she has selected three stocksIntel, Microsoft, and GMand has tracked their performances for six months. The results follow:
Step by Step Answer:
Personal Finance An Integrated Planning Approach
ISBN: 978-0136063032
8th edition
Authors: Ralph R Frasca