Choose six actively traded stocks for inclusion in your investment portfolio. Assume the portfolio was created three

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Choose six actively traded stocks for inclusion in your investment portfolio. Assume the portfolio was created three years ago by purchasing 200 shares of each of the six stocks. Find the acquisition price of each stock, the annual dividend paid by each stock, and the year-end prices for the three calendar years. Record for each stock its total cost, cost per share, current price per share, and total current value at the end of each of the three calendar years.
a. For each of the three years, find the amount invested in the portfolio.
b. For each of the three years, measure the annual income from the portfolio.

c. For each of the three years, determine the unrealized capital gains from the portfolio.
d. For each of the three years, calculate the portfolio’s HPR, using the values in parts a, b, and c.
e. Use your findings in part d to calculate the average HPR for the portfolio over the three-year period. Discuss your finding.

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Fundamentals Of Investing

ISBN: 9780135175217

14th Edition

Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk

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