You purchased 1,000 shares of K.C Inc.common stock one year ago for $50 per share.You received a dividend of $2 per share today and decide to take your profits by selling at $54.50 per share.What is your holding period return?
A) 13.0%
B) 9.0%
C) 6.5%
D) 4.0%

Question

Quizplus · Accepted Answer

The holding period return is calculated as: [(Ending Price - Initial Price) + Dividend] / Initial Price. Here, it is [(54.50 - 50) + 2] / 50 = 13%.

You Purchased 1,000 Shares of K