You purchased a share of stock for $65.One year later you received $2.37 as a dividend and sold the share for $63.What was your holding-period return?
A)0.57%
B)-0.2550%
C)-0.89%
D)1.63%
E)none of the above

Question

Quizplus · Accepted Answer

The holding-period return is calculated as follows:Holding-period return = (Dividend + Capital gain) / Initial investmentDividend = $2.37Capital gain = $63 - $65 = -$2Initial investment = $65Holding-period return = ($2.37 - $2) / $65 = 0.57%

You Purchased a Share of Stock for $65