Question

1. stock Calculate the total return percentage achieved for each individual stock from the day you selected the to the present or most recent business day. Use the formula
   
   End Share Price – Beginning Share Price + Dividends Received (if any)/Beginning Share Price.

Husky energy: End-June 23-4.69                      Beginning -April 1-3.65

Canopy Growth: end- June 23- 17.24                 Brining- April 1– 13.58

2.Annualize the percentage return for each stock; that is, calculate what your return would be if you held the stock for one year. To do this, take your returns from above, divide by the number of days the share was held, and multiply by 365.

3. Calculate the annualized return for the Husky energy and Canopy Growth Company. (Use an equal weighting for each stock.) Was your return higher or lower than the rate of inflation?

Thanks!

Answer 1

1.

Name of stock	june 23	april 1
Husky Energy	4.69	3.65
Canopy Growth	17.24	13.58

Total 84 days

Total Return in 84 days (Husky Energy) = (4.69-3.65) / 3.65 * 100 = 28.49%

Total Return in 84 days (Canopy Growth) = (17.24-13.58)/13.58 *100 = 26.95%

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2.

Annualised return (Husky Energy) = 28.49%/84 days * 365 days = 123.80%

Annualised return (Canopy Growth) = 26.95% /84 days *365 days = 114.10%

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3.

Name of the stock	annualised return(A)	weight(B)	weighted return(A*B)
Husky energy	123.80%	0.5	61.90%
Canopy Growth	114.10%	0.5	57.05%
		Annualized return of the portfolio	118.95%

Overall annulised return from the portfolio consisting Husky energy and Canopy Growth stock in equal stock is 118.95%. Generally the inflation rate will be less than 118.95%.Hence the over all return is more than inflation rate.