Jake purchased 200 shares of ABC stock at $21.25 per share. After nine months, he sold all of his shares at a price of $19.88 a share. Jake received a total of $0.55 per share in dividends during the time he owned the shares. Jake's holding period return is
A) - 3.9%.
B) 9.7%.
C) 2.6%.
D) - 6.4%.

Question

Quizplus · Accepted Answer

Jake's holding period return is calculated as: [(Selling Price + Dividends - Purchase Price) / Purchase Price] * 100. Substituting the values: [(19.88 + 0.55 - 21.25) / 21.25] * 100 = -3.9%.

Jake Purchased 200 Shares of ABC Stock at $21