Investment and Portfolio Management Quiz 1

1. Suppose you invest $10,000 in a mutual fund at the beginning of the year. Throughout
the year, the fund pays a dividend of $500, and by the end of the year, the value of your
investment grows to $10,800. What is the total return on your investment for the year?

2. You invest $15,000 in a stock. Over the course of the year, the stock appreciates by 8%,
and you also receive dividends totaling $600. At the end of the year, you sell the stock
for $16,500. What is the total return on your investment?
3. You invest 50,000 Philippine pesos (PHP) in a mutual fund. The fund has historically
generated an average annual return of 7.5%. If this trend continues, what is the
expected return on your investment after one year?
4. You invested 80,000 Philippine pesos (PHP) in Stock A six months ago. Over this period,
the value of Stock A increased to 90,000 PHP. At the same time, the overall market
index increased by 5%. What is the relative return of Stock A compared to the market
index? Answer should be in percentage form
5. You invested 100,000 Philippine pesos (PHP) in a bond fund five years ago. Over this
period, the fund generated a nominal return of 8% per year. However, the inflation rate
over the same period was 3% per year. What is the inflation-adjusted return on your
investment?