1) Calculate the Holding Period Return: (please show your calculation with brief explanation)
You invested to one of investment $45 per year last year. This year is worth $54 per share. Company also pay dividend $15 per share. What is the total return over the past year.
2) Calculate the expected rate of return: Please show your clear calculation and brief explanaiton.
You are holding four portfolios. It has different expected rate of return and risk level of %. What is your expected return of your three investment?
Investment Expected Return % Risk Level %
A 15% 14%
B 13% 12%
C 10% 15%
D 17% 15%