You purchase a share of CAT stock for $90.One year later,after receiving a dividend of $4,you sell the stock for $97.What was your holding-period return?
A)14.44%
B)12.22%
C)13.33%
D)5.56%
E)none of the above

Question

Quizplus · Accepted Answer

Holding period return can be calculated as [(Ending value - Beginning value + Dividends) / Beginning value] x 100.
In this case,
Beginning value = $90
Ending value = $97
Dividend received = $4
Holding period return = [($97 - $90 + $4) / $90] x 100 = 12.22%

You Purchase a Share of CAT Stock for $90