FIN630 GDB Idea solution

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?

Idea Solution:-

Holding Period Return = Income + [ End of Period Value – Initial Value]
Initial Value

Holding period return of Stock A = 6.034%
Holding period return of Stock B = 6.00 %
Annual Return for both stocks:
Stock A = 5.034%
Stock B = 5.00 %
Stock With Greater Return = Stock A
 

Please do make changes in these assignment otherwise every one who copy this assignment as it is will awarded zero marks 

NOTE: - These Assignments OR Quiz are just for idea, so kindly don't copy it, after viewing it make your own. Thanks We always try our best to upload 100% correct solution BUT it is requested that you kindly review it before submission, please BEST OF LUCK, Thanks to those students those send me Assignments and quizzes. If you have any Assignment and quiz kindly send at fascobuk@gmail.com