Ashley purchased a stock at $54 per share. She received quarterly dividends of $0.80 per share. After one year, Ashley sold the stock at a price of $53.25 a share. What is her percentage holding period return on this investment?
A) 4.5%
B) 7.3%
C) 5.9%
D) -1.4%

Question

Quizplus · Accepted Answer

The percentage holding period return is calculated as follows:Percentage holding period return = (Ending value - Beginning value + Dividends) / Beginning value * 100Beginning value = $54 per shareEnding value = $53.25 per shareDividends = $0.80 per sharePercentage holding period return = ($53.25 - $54 + $0.80) / $54 * 100= -0.014 * 100= -1.4%

Ashley Purchased a Stock at $54 Per Share