6.66 points Problem 9-32 Portfolio Return (LG9-7) The table below shows your sto

ID: 2797392 • Letter: 6

Question

6.66 points Problem 9-32 Portfolio Return (LG9-7) The table below shows your stock positions at the beginning of the year, the dividends that each stock paid during the year, and the stock prices at the end of the year Year Price $73.31 57.97 25.34 ShareEnd of Year $ 86.12 53.91 24.79 39.32 Johnson Controls Medtronic Direct TV 600 900 400 $1.25 0.49 0.43 What is your portfolio dollar return and percentage return? (Round your answers to 2 decimal Dollar return Percentage return Hints References eBook & Resources -, F6 F2

Explanation / Answer

Company

Beginning of year price (B)

End of year price (E)

Increase in value of shares (I)

Dividend per share (D)

Dollar return per share

Total dollar return

(E-B)

(I+D)

Return per share*Number of shares

Johnson Controls

400

73.31

86.12

12.81

1.25

14.06

5,624.00

Medtronic

600

57.97

53.91

-4.06

0.49

-3.57

-2,142.00

Direct TV

900

25.34

24.79

-0.55

-495.00

Qualcomm

400

43.48

39.32

-4.16

0.43

-3.73

-1,492.00

200.1

1,495.00

Dollar return of portfolio = $1,495

Total beginning price of the portfolio = (400*$73.31) + (600*$57.97) + (900*$25.34) + (400*$43.48) = $104,304

Percentage return = $1,495/$104,304 = 0.0143 = 1.43%