Use the Information Below for the Following Problem(S)
Assume that you hold a two stock portfolio. You are provided with the following information on your holdings:
$$\begin{array} { c c c c }
\text { stack } & \text { shares } & \text { Price(t) } & \text { Price } ( \mathrm { t } + 1 ) \
\hline 1 & 15 & 10 & 12 \
2 & 25 & 15 & 16
\end{array}$$
-Refer to Exhibit 1.8.Calculate the HPY for stock 2.
A) 5%
B) 6%
C) 7%
D) 8%
E) 10%

Question

Use the Information Below for the Following Problem(S)
Assume that you hold a two stock portfolio. You are provided with the following information on your holdings:
 $$\begin{array} { c c c c } 
\text { stack } & \text { shares } & \text { Price(t) } & \text { Price } ( \mathrm { t } + 1 ) \
\hline 1 & 15 & 10 & 12 \
2 & 25 & 15 & 16
\end{array}$$
-Refer to Exhibit 1.8.Calculate the HPY for stock 2.
A) 5%
B) 6%
C) 7%
D) 8%
E) 10%

Quizplus · Accepted Answer

$\begin{array}{cccccccccc}
\text { Stock } & \text { Shares } & \text { Price }(\mathrm{t}) & (\mathrm{t}) & (\mathbf{t}+\mathbf{l}) & (\mathrm{t}+\mathbf{l}) & \text { HPR } & \text { HPY } & \text { Weight } & \text { HPY } \
\hline 1 & 15 & 10 & 150 & 12 & 180 & 1.2 & 0.2 & 0.29 & 0.058 \
2 & 25 & 15 & 375 & 16 & 400 & 1.07 & 0.07 & 0.71 & 0.048 \
& & & 525 & & 580 & & & & 0.106
\end{array}$
 HPY for stock 2 = (400/375)- 1 = .07 = 7%

Use the Information Below for the Following Problem(S) Assume That

Use the Information Below for the Following Problem(S)
Assume That