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10 June, 08:57

Consider that you own the following position at the beginning of the year: 200 shares of US Bancorp at $29.89 per share, 300 shares of Micron Technology at $13.31 per share, and 250 shares of Hilton Hotels at $24.11 per share. During the year, US Bancorp and Hilton Hotels both paid a dividend of $1.39 and $0.16, respectively. At the end of the year, the stock prices of US Bancorp, Micron, and Hilton Hotels were $36.19, $13.12, and $34.90, respectively. What are the dollar and percentage return of the stocks and the return of the portfolio

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  1. 10 June, 11:56
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    Dollar return of US Bancorp = $7.69

    Explanation:

    A Dollar return of US Bancorp = $36.19 - $29.89 + $1.39 = $7.69

    Total Dollar return of US Bancorp = $7.69 * 200 = $1,538

    Percentage return of US Bancorp percentage return = ($7.69/$29.89) * 100 = 25.72%

    B Dollar loss of Hilton Hotels = $13.12 - $13.31 = - $0.19

    Total Dollar loss of Hilton Hotels = - $0.19 * 300 = - $57.00

    Percentage loss of Hilton Hotels = (-$0.19/$13.31) * 100 = 1.43%

    C Dollar return of Hilton Hotels = $34.90 - $24.11 + $0.16 = $10.95

    Total Dollar return of Hilton Hotels = $10.95 * 250 = $2,737.50

    Percentage return of Hilton Hotels = ($10.95/$24.11) * 100 = 45.42%
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