Question: You have received your investment portfolio year-end statement from your broker, Rich Waldman. All investments were purchase at the January prices and held the entire year.
| Portfolio Year-End Statement |
| Investment |
Number |
Dividend |
Price-Jan 1 |
Price Dec-31 |
| FernRod Corp. |
400 shares |
$0.30 |
$38.38 |
$45.75 |
| Crwon Realty, Inc. |
500 shares |
$0.00 |
$74.50 |
$70.13 |
| Sterling Mines |
200 shares |
$0.24 |
$27.88 |
$29.25 |
| SJB Enterprises |
300 shares |
$3.00 |
$68.75 |
$64.63 |
| GTech 7.125% 16 |
20 bonds |
|
$98.50 |
$101.38 |
| Comet 9.875% 17 |
10 bonds |
|
$103.88 |
$100.75 |
A. Calculate how much profit or loss you made for the year, including stock dividends and bond interest.
B. What was the total return on investment for your portfolio?
C. Using a brokers commission of 3% selling on the stocks and $5 buying and 5$ selling per bond, how much profit or loss would you make if you liquidate your entire portfolio at the December 31 prices?
D. What would be the return on investment?