Tutorial 7 HPR

You have made some transactions in the following mutual fund recently in the CIMB stock
investment challenge. In order to know your current ranking, your are required to calculate the
current gain or loss of your portfolio.

1st October 2015 Purchased 300 units of Dana Maju at

RM2.60
Purchased 500 units of Dana Kaya at
RM1.50
Paid Brokerrage Fee, Clearing Fee and
Stamp duty total of RM85
16th January 2016 Received dividend on Dana Maju of
RM0.025 per unit
28th January 2016 Received 1:2 Bonus Issue from Dana Maju
29th January 2016 Dana Maju price closed at RM2.20
Dana Kaya price closed at RM2.10

Required :
(a) Calculate :
(i) Total capital gain [5 marks]
(ii) Holding period return (HPR) [6 marks]
(iii) Annualized HPR [2 marks]

(b) Briefly describe THREE (3) different levels of market efficiency in the stock market. Why
do you think the stock market should be efficient?
[7 marks]