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29 August, 21:52

At the beginning of the year, Mr. and Mrs. Smith's portfolio is made up of $200 cash, stocks, with value of $236,000, and bonds worth $163,000. Mr. Smith received $5,000 in dividends and bond interest of $4,150. At year end, Mr. Smith has $200 cash, stocks $250,000 and bonds worth $159,000. What was Mr. Smith's total return for the year?

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  1. 30 August, 01:33
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    4.797% of total return

    Step-by-step explanation:

    In this case, first, let's gather the dа ta:

    Beggining of the year:

    200 + 236,000 + 163,000 = 399,200$

    End of the year:

    200 + 250,000 + 159,000 = 409,200$

    This means that between the beggining and the end of the year, Mr Smith only had a gain of 10,000$.

    To get the final return, we need to add this gain to the dividens and interest which is:

    10,000 + 5,000 + 4,150 = 19,150$

    So, the total return would be the percentage between this gaining and the innitial amount:

    % = 19,150 / 399,200 * 100

    % = 4.797%

    And this is the total return.
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