A portfolio starts out worth $1200. After the first year, it is worth $1320. After the 2 nd, it’s worth $1,359.60. After the 3rd year, it’s valued at $1,393.59. In the 4th year, it earns an HPR of 5.35%.
a) What is this portfolio worth at the end of the 4th year?
b) What is its average annual rate of return?
1. Overall a certain holding period, a stock falls from $30 to $27.50, and pays a dividend of $1.755. What is its HPR for that period?
2. Calculate the monthly payment you’d make on a mortgage of $550,000 if the (annual) interest rate is 3.875% and the term of the loan is 30 years.