The following table 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. What is your portfolio percentage return?
$$\begin{array} { l r c c c }
\text { Company } & \text { Shares } & \begin{array} { c }
\text { Beginning of } \
\text { Year Price }
\end{array} & \begin{array} { c }
\text { Dividend } \
\text { per Share }
\end{array} & \begin{array} { c }
\text { End of } \
\text { Year Price }
\end{array} \
\mathrm { W } & 100 & \$ 25.00 & \$ 1.00 & \$ 24.00 \
\mathrm { P } & 200 & \$ 14.00 & \$ 0.75 & \$ 15.25 \
\mathrm {~J} & 400 & \$ 8.00 & & \$ 10.00 \
\mathrm { D } & 200 & \$ 3.00 & \$ 0.50 & \$ 3.50
\end{array}$$
A) 3.85 percent
B) 11.54 percent
C) 15.38 percent
D) 17.58 percent

Question

The following table 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. What is your portfolio percentage return?
$$\begin{array} { l r c c c } 
\text { Company } & \text { Shares } & \begin{array} { c } 
\text { Beginning of } \
\text { Year Price }
\end{array} & \begin{array} { c } 
\text { Dividend } \
\text { per Share }
\end{array} & \begin{array} { c } 
\text { End of } \
\text { Year Price }
\end{array} \
\mathrm { W } & 100 & \$ 25.00 & \$ 1.00 & \$ 24.00 \
\mathrm { P } & 200 & \$ 14.00 & \$ 0.75 & \$ 15.25 \
\mathrm {~J} & 400 & \$ 8.00 & & \$ 10.00 \
\mathrm { D } & 200 & \$ 3.00 & \$ 0.50 & \$ 3.50
\end{array}$$
A) 3.85 percent
B) 11.54 percent
C) 15.38 percent
D) 17.58 percent

Quizplus · Accepted Answer

To calculate the portfolio percentage return, we need to calculate the total initial value, the total dividends received, and the total final value of the stocks. Then, we use the formula for percentage return, which is $(\text{Final Value} + \text{Dividends} - \text{Initial Value}) / \text{Initial Value} \times 100$.1. Initial Value:- W: $100 \times \$25.00 = \$2500$- P: $200 \times \$14.00 = \$2800$- J: $400 \times \$8.00 = \$3200$- D: $200 \times \$3.00 = \$600$- Total Initial Value = \$2500 + \$2800 + \$3200 + \$600 = \$91002. Dividends:- W: $100 \times \$1.00 = \$100$- P: $200 \times \$0.75 = \$150$- J: $400 \times \$0.00 = \$0$ (No dividend mentioned)- D: $200 \times \$0.50 = \$100$- Total Dividends = \$100 + \$150 + \$0 + \$100 = \$3503. Final Value:- W: $100 \times \$24.00 = \$2400$- P: $200 \times \$15.25 = \$3050$- J: $400 \times \$10.00 = \$4000$- D: $200 \times \$3.50 = \$700$- Total Final Value = \$2400 + \$3050 + \$4000 + \$700 = \$101504. Percentage Return:$\frac{\$10150 + \$350 - \$9100}{\$9100} \times 100 = \frac{\$1400}{\$9100} \times 100 \approx 15.38\%$Therefore, the portfolio percentage return is approximately 15.38 percent.

The Following Table Shows Your Stock Positions at the Beginning