You purchase a share of Duke Energy Stock for $90. One year later, after receiving a dividend of $3, you sell the stock for $92. What was your holding-period return?
A) 4.44%
B) 2.22%
C) 3.33%
D) 5.56%
E) None of the options are correct.

Question

Quizplus · Accepted Answer

The holding-period return is calculated as (Ending Price - Initial Price + Dividend) / Initial Price. Here, it is ($92 - $90 + $3) / $90 = $5 / $90 = 5.56%.

You Purchase a Share of Duke Energy Stock for $90