Calculate the holding period return for each stock

Recall the three stocks and benchmark you identified at the beginning of week 1.

Three stocks: APPL Apple Inc, GOOGL Alphabet Inc., and MSFT Microsoft Corporate, the benchmark was KTCAX

1a. Calculate the holding period return for each stock from the viewpoint of an investor who purchased them at the closing price on Monday 16 March 2020 and held them until the closing of the market on Wednesday 15 April 2020. If you need to review this calculation, refer to the Week 1 notes.

If you had initially invested $10,000 in each of the three stocks, how much would your portfolio be worth at the end of your holding period?

1b. Repeat the calculations in 1a. for your benchmark. (Holding period return and ending value of a $10,000 initial investment.)

2. Discuss reasons for the differences in results for 1a. and 1b. In retrospect, was your benchmark a reasonable one? Why or why not?

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