Considering three stocks AAPL, Msft, and Orcl. Closing price on 3/21/2016 for ea
ID: 2766773 • Letter: C
Question
Considering three stocks AAPL, Msft, and Orcl. Closing price on 3/21/2016 for each respectively are: AAPL was 105.91; MSFT was 53.86 and ORCL was 41.61. If the prices on 4/20/2016 changed to: AAPL 107.13 MSFT 55.59 and ORCL 41.10. 1- calculate the holding period return for each stock from 03/21/16 to 04/20/16. 2- if you had initially invested $10,000 in each of the three stocks , how much would your portfolio be worth at end of your holding ( 4/20/16) 3- if your benchmark is Nasdaq composite index, calculate the holding return and ending value of a $10,000 initial investment. 4 - discuss the difference in question 1 and 2 , was the benchmark a reasonable one ? Why or why not? Considering three stocks AAPL, Msft, and Orcl. Closing price on 3/21/2016 for each respectively are: AAPL was 105.91; MSFT was 53.86 and ORCL was 41.61. If the prices on 4/20/2016 changed to: AAPL 107.13 MSFT 55.59 and ORCL 41.10. 1- calculate the holding period return for each stock from 03/21/16 to 04/20/16. 2- if you had initially invested $10,000 in each of the three stocks , how much would your portfolio be worth at end of your holding ( 4/20/16) 3- if your benchmark is Nasdaq composite index, calculate the holding return and ending value of a $10,000 initial investment. 4 - discuss the difference in question 1 and 2 , was the benchmark a reasonable one ? Why or why not? 1- calculate the holding period return for each stock from 03/21/16 to 04/20/16. 2- if you had initially invested $10,000 in each of the three stocks , how much would your portfolio be worth at end of your holding ( 4/20/16) 3- if your benchmark is Nasdaq composite index, calculate the holding return and ending value of a $10,000 initial investment. 4 - discuss the difference in question 1 and 2 , was the benchmark a reasonable one ? Why or why not?Explanation / Answer
1
Calculation of holding period return (HPR) for each stock:
Stock
Closing price on 3/21/2016
Closing price on 4/20/2016
Change in Price
HPR
A
B
C = B-A
= C / A
AAPL
105.91
107.13
1.22
1.15%
Msft.
53.86
55.59
1.73
3.21%
Orcl.
41.61
41.1
-0.51
-1.23%
2
Calculation worth of portfolio at end of holding period ( 4/20/16):
Stock
Investment
HPR
Stock Worth ( 4/20/16)
A
B
= A* (1+B)
AAPL
10000
1.15%
$ 10,115.19
10000*(1+1.15%)
Msft.
10000
3.21%
$ 10,321.20
10000*(1+3.21%)
Orcl.
10000
-1.23%
$ 9,877.43
10000*(1-1.23%)
Worth of portfolio at end of holding period ( 4/20/16):
$ 30,313.83
1
Calculation of holding period return (HPR) for each stock:
Stock
Closing price on 3/21/2016
Closing price on 4/20/2016
Change in Price
HPR
A
B
C = B-A
= C / A
AAPL
105.91
107.13
1.22
1.15%
Msft.
53.86
55.59
1.73
3.21%
Orcl.
41.61
41.1
-0.51
-1.23%
2
Calculation worth of portfolio at end of holding period ( 4/20/16):
Stock
Investment
HPR
Stock Worth ( 4/20/16)
A
B
= A* (1+B)
AAPL
10000
1.15%
$ 10,115.19
10000*(1+1.15%)
Msft.
10000
3.21%
$ 10,321.20
10000*(1+3.21%)
Orcl.
10000
-1.23%
$ 9,877.43
10000*(1-1.23%)
Worth of portfolio at end of holding period ( 4/20/16):
$ 30,313.83