Score: 0 of 1 pt 4 of 12 (3 complete) P 11-10 (similar to) Use the data for Star

Question

Score: 0 of 1 pt 4 of 12 (3 complete) P 11-10 (similar to) Use the data for Starbucks (SBUX) and Google (GOOG) EEB to answer the following questions: a. What is the return for SBUX over the period without including its dividends? With the dividends? b. What is the return for GOOG over the period? C. If you have 25% of your portfolio in SBUX and 75% in GOOG, what was the return on your portfolio excluding dividends? a. What is the return for SBUX over the period without including its dividends? The return without the dividends is [ ]%. (Round to two decimal places.) Enter your answer in the answer box and then click Check Answer. Clear All parts remaining

Explanation / Answer

A) Calculation of Return without dividend :-

= Price at end - Price at Beginning

= $53.18 - $43.64

= $9.54

Return in % = Return / Price at Beginning

= $9.54 / $43.64

= 21.86%

Return with Dividend :-

= Return without Dividend + Total Dividend

= $9.54 + $0.72

= $10.26

Return in % = $10.26 / $43.64 = 23.51%

B) Return on Google :-

= $659.05 - $613.0

= $46.05

Return in % = $46.05 / $613 = 7.51%

C) 25% in Starbucks and 75% in Google so expected return on Portfolio :-

= (25% * 21.86%) + (75% * 7.51%)

= 5.465% + 5.63%

= 11.09%

Return in $ = (25% * $9.54) + (75% * $46.05)

= $2.385 + $34.537

= $36.92

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