An investor purchased a share of AutheTec stock (AUTH)for $12.50.Three months later the stock was sold for $14.25.What is the holding period return earned by the investor?
A) 14%
B) 20%
C) 18%
D) 16%

Question

Quizplus · Accepted Answer

The holding period return (HPR) is calculated as (Selling Price - Purchase Price) / Purchase Price. So, (14.25 - 12.50) / 12.50 = 1.75 / 12.50 = 0.14 or 14%.

An Investor Purchased a Share of AutheTec Stock (AUTH)for $12