What is the yearly total return on each investment

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Reference no: EM132772798

Question - Consider the portfolio of two investments A and B

 

A

B

Purchase Price

$1000

$1000

Dividends Received

 

 

1st Quarter

$10

0

2nd Quarter

$20

0

3rd Quarter

$20

0

4th Quarter

$30

$120

Required - Answer the following questions accordingly:

1. What is the yearly total return on each investment?

2. If the investor can sell A at the end of the year for $1100, and sell B for $960. What is the total return on A and on B?

3. What is the rate of return on A and on B?

4. Which investment should the investor buy A or B?

Reference no: EM132772798

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