A share bought for $20 at the start of the period and sold for $15 at the end of the period which paid dividends of $2 and $3 in the interim generated a holding period return of:
A) -50%.
B) 0%.
C) 50%.
D) 100%.

Question

Quizplus · Accepted Answer

The holding period return (HPR) is calculated as (Ending Value + Dividends - Initial Value) / Initial Value. Here, it's ($15 + $2 + $3 - $20) / $20 = 0%, indicating no gain or loss over the period.

A Share Bought for $20 at the Start of the Period