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Question 1 (7 points) Saved Michele purchased 100 shares of ABC stock for $20 per share. Each year, she received quarterly dividends of $30. After three years of ownership, Michele sold the stock for $22.45 per share. a. What was her holding period return? Show your calculations. (3 marks) b. What was Michele's annualized return on the stock? Show your calculations. (2 marks) 4 c. What is the dollar amount of Michele's return? (2 marks) Three years ago, Michele purchased four (4) Great Waste Life corporate bonds at a discount of $980 each. The face amount on each bond is $1000. The bond had a coupon rate of 3%, payable semi-annually, and is currently maturing. a) What is Michele's holding period return on the bonds? Show your calculations. (3 marks) b) What is her annual rate of return on the bonds? Show your calculations (2 marks) Question 3 (4 points) Michele purchased 100 units of an Equity Mutual Fund 3 years ago for $40 per unit. During the three years she received $3 per share in dividend distributions, $2 per share in capital gain distributions, and capital gains of $100 when she sold the fund at the end of three year period. What is the return over the holding period? Show your calculations. (4 marks) Question 4 (5 points) a. With the holdings that Michele had, how would you describe the type of asset allocation strategy in her portfolio looking at the allocation of assets as a percentage of the portfolio? (2 marks) b. What is the holding period rate of return for Michele's entire portfolio

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