What is the return on a portfolio on a portfolio if the portfolio market value at the beginning of the interval is $1,350, the portfolio market value at the end of the interval is $1,185, and the cash distributions to the investor during the interval is $115.52?

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Quizplus · Accepted Answer

The return on the portfolio can be calculated using the formula: $$ \text{Return} = \frac{\text{End Value} + \text{Cash Distributions} - \text{Beginning Value}}{\text{Beginning Value}} \times 100\% $$ Plugging in the given values: $$ \text{Return} = \frac{1185 + 115.52 - 1350}{1350} \times 100\% = \frac{-49.48}{1350} \times 100\% = -3.67\% $$

What Is the Return on a Portfolio on a Portfolio