01-13-2011, 06:23 PM
Mr. Salman has a diversified portfolio of bonds and stocks. He has sold two stocks from portfolio.
1. Stock A which was purchased 8 months ago for Rs. 580 has paid Rs. 15 dividend and currently selling at Rs. 600.
2. Stock B which was purchased 6 months ago for Rs. 450 has paid Rs. 12 dividend and currently selling at Rs. 465.
You are required to help Mr. Salman in analyzing which stock has given more return.
Required:
1. Calculate holding period return of stock A
2. Calculate holding period return of stock B
3. Calculate the annual return on both stocks
4. On which stock (A or B) return is greater?
1. Stock A which was purchased 8 months ago for Rs. 580 has paid Rs. 15 dividend and currently selling at Rs. 600.
2. Stock B which was purchased 6 months ago for Rs. 450 has paid Rs. 12 dividend and currently selling at Rs. 465.
You are required to help Mr. Salman in analyzing which stock has given more return.
Required:
1. Calculate holding period return of stock A
2. Calculate holding period return of stock B
3. Calculate the annual return on both stocks
4. On which stock (A or B) return is greater?
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