On January 1st, an investor purchases security A for $105. Over the next four months, dividends totaling $15 were paid on security A) On March 31st, security A was sold for $120. What is the holding period return for security A?

Question

Quizplus · Accepted Answer

The holding period return is calculated as (Ending Price - Beginning Price + Dividends) / Beginning Price. Here, it is ($120 - $105 + $15) / $105 = $30 / $105 = 28.5%.

On January 1st, an Investor Purchases Security a for $105