Questions:
A portfolio has exactly three stocks (one share each) in it. Amazon's stock was priced at $153 at the start of 2023 and $190 at the end of the year. During the year it paid a dividend of $0.75. Walmart's stock was priced at $562 at the start of 2023 and $590 at the end of the year. During the year it paid a dividend of $1. Meta's stock was priced at $125 at the start of 2023 and $124 at the end of the year. During the year it paid a dividend of $3. 

What is the price return of this portfolio?

Is the total return of this portfolio higher than the price return?

Reference answers:
Price return = (VP1 - VP0) / VP0

where:
- VP1 = end price
- VP0 = initial price

## Amazon

Individual price return = ($190 - $153)/$153 = 24.18%

Weight in the portfolio = 1/3

Contribution to the portfolio price return = 24.18%  * 1/3 = 8.6%

## Walmart

Individual price return = ($590 - $562) / $562 = 4.98%

Weight in the portfolio = 1/3

Contribution to the portfolio price return = 4.98% * 1/3 = 1.66%

## Meta

Individual price return = ($124 - $125) / $125 = -0.80%

Weight in the portfolio = 1/3

Contribution to the portfolio price return = -0.80% * 1/3 = -0.27%

## Portfolio Price Return

 8.06% + 1.66% + (-0.27%) = 9.46%

The price return was 9.46%.

# Total Return

Total return = (year-end value + dividends - Beginning value) / Beginning value 

## Amazon

Individual - total return = (190 + 0.75 - 153) / 153 = 24.67%

Weight in the portfolio = 1/3

Contribution to the portfolio price return = 24.67% * 1/3 = 8.22%

## Walmart

Individual - total return = ( 590 + 1  - 562) / 562  = 5.16%

Weight in the portfolio = 1/3

Contribution to the portfolio price return = 5.16% * 1/3 = 1.72%

## Meta

Individual - total return = ( 124 + 3  - 125) /  125 = 1.60%

Weight in the portfolio = 1/3

Contribution to the portfolio price return = 1.6% * 1/3 = 0.53%

## Portfolio Total Return

8.22% + 1.72% + 0.53% = 10.48%

# Results

The total return was 10.48%, which is higher than the price return of 9.46%.