You purchased a share of stock for $120. One year later, you received $1.82 as a dividend and sold the share for $136. What was your holding-period return?
A) 15.67%
B) 22.12%
C) 18.85%
D) 13.24%
E) None of the options are correct.

Question

Quizplus · Accepted Answer

The holding-period return (HPR) can be calculated using the formula: HPR = [(P1 - P0) + D] / P0, where P0 is the initial price of the stock, P1 is the selling price of the stock, and D is the dividend received. Substituting the given values: HPR = [(136 - 120) + 1.82] / 120 = 17.82 / 120 = 0.1485 or 14.85%. None of the provided options match this calculation.

You Purchased a Share of Stock for $120