Gce Model Questions Vol1 2019 Commerce Question 44

An investor initially purchases 150 shares of Stock A at \(\text{₦}2,400\) each and 200 shares of Stock B at \(\text{₦}1,800\) each. A brokerage fee of \(0.5\%\) of the transaction value is charged on each purchase and on each sale. After six months the price of Stock A rises by \(12\%\) and the price of Stock B falls by \(8\%\). During the same period the investor receives a dividend of \(\text{₦}120\) per share on Stock A and \(\text{₦}90\) per share on Stock B. The investor then sells all his shares.\n\na) Calculate the total amount received from the sale, including dividends, after deducting the selling brokerage fee.\nb) Determine the overall percentage return on the original investment, taking into account purchase fees, dividends and selling fees.\nc) If the market index rose by \(10\%\) over the same period, did the investor outperform the market? State the difference in percentage points.