Question

Below is data from a brokerage account Joyce opened eight (8) months ago. The first column shows the ticker symbols for stocks she has purchased.

1. Solve for the missing values to be sure you know where the numbers come from. Given the info below, what was the previous closing price for SINA?

2. Let’s assume Joyce bought all of these stocks exactly nine months ago. If Costco declares and pays a dividend of $2.45 per share in that period, calculate her rate of return for that period, then “annualize” it.

Symbol	Qty	Last Price	Chg ($|%)	Mkt Value	Total Cost	Avg Unit Cost	Total G/L $
ADSK	55	$41.88	($0.01)	$2,303.40	$1,987.00	$36.13	$316.40
BRK/B	17	$114.75	($0.52)	$1,950.75	$1,997.36	$117.49	($46.61)
COST	17	$119.93	$0.87	$2,038.81	$1,993.11	$117.24	$45.70
DASTY	14	_______	($1.10)	$1,667.54	$1,879.05	$134.22	($211.51)
DDD	_____	$63.46	$0.45	$5,204.11	$4,304.26	$52.49	$899.85
EWD	300	$34.09	$0.26	________	$10,473.99	$34.91	($246.99)
NOV	27	$80.69	($0.14)	$2,178.63	$1,940.47	$71.87	$238.16
OII	24	$86.26	$0.12	$2,070.24	________	$80.60	$135.80
SINA	25	$82.10	($0.24)	$2,052.50	$2,192.00	$87.68	________
SSYS	40	$115.13	($2.47)	$4,605.20	$4,280.00	______	$325.20
				$34,298.18	$32,981.69		$1,316.50

3. Let’s say Joyce buys 15 more shares of SSYS at the current market price of $115.13. At the end of trading, the price was $115.86. Given this info, recalculate the data for her investment in SSYS as of the end of trading. The commission on her purchase was $8.00.

SSYS

55

$115.86

($1.74)

________

________

4. Let’s say the total dividends declared and paid on the above stocks during the eight-month period equals $122.67. What is the overall rate of return on Joyce’s portfolio for this period? Finally, annualize her return.

Answer 1

Symbol	Qty	Last Price	Chg ($|%)	Mkt Value	Total Cost	Avg Unit Cost	Total G/L $
ADSK	55	$41.88	($0.01)	$2,303.40	$1,987.00	$36.13	$316.40
BRK/B	17	$114.75	($0.52)	$1,950.75	$1,997.36	$117.49	($46.61)
COST	17	$119.93	$0.87	$2,038.81	$1,993.11	$117.24	$45.70
DASTY	14	$119.11	($1.10)	$1,667.54	$1,879.05	$134.22	($211.51)
DDD	82	$63.46	$0.45	$5,204.11	$4,304.26	$52.49	$899.85
EWD	300	$34.09	$0.26	$10,227	$10,473.99	$34.91	($246.99)
NOV	27	$80.69	($0.14)	$2,178.63	$1,940.47	$71.87	$238.16
OII	24	$86.26	$0.12	$2,070.24	$1,934.40	$80.60	$135.80
SINA	25	$82.10	($0.24)	$2,052.50	$2,192.00	$87.68	($139.50)
SSYS	40	$115.13	($2.47)	$4,605.20	$4,280.00	$107	$325.20
				$34,298.18	$32,981.69		$1,316.50

The previous closing price for SINA = last trading price + change = 82.10+0.24 = $82.34

2. Stock name - COSTCO

Dividend received = $2.45 per share

Average cost = $117.24

Last price = $119.93

time = 9 months

Holding period return = ( (last price - avg cost)+ Dividend)/ avg cost

= ((119.93-117.24)+2.45)/117.24

= 0.0438 = 4.38%

Annualized Holding period return = (1+HPR)(1/time) - 1 = (1+0.0438)(12/9) - 1

= 0.0588 = 5.88%

Annualized Holding period return = 5.88%

3.

Number of quantity = 55

15 shares bought at the price = $115.13

cost increased = 15*115.13 = $1726.95

Total cost incurred = 4280+1726.95 =$6006.95

Average cost = 6006.95/55 = $109.22

Market value = 55*115.86 = $6372.30

Gain = 6372.30-6006.95 = $365.35

Symbol	Qty	Last Price	Chg ($|%)	Mkt Value	Total Cost	Avg Unit Cost	Total G/L $
SSYS	55	$115.86	($1.74)	$6372.30	$6006.95	$109.22	$365.35

4.

Dividend received = $122.67

total cost = $32,981.69

Market value = $34,298.18

time = 8 months

Holding period return = ( (last price - total cost)+ Dividend)/ avg cost

= (($34,298.18-$32,981.69)+$122.67)/32,981.69

= 0.0436 = 4.36%

Annualized Holding period return = (1+HPR)(1/time) - 1 = (1+0.0436)(12/8) - 1

= 0.0661 = 6.61%

Annualized Holding period return = 6.61%