Two years ago,you purchased 100 shares of stock in ABC at a price of $43.26 a share.The stock pays an annual dividend of $.10 a share.Today,you sold all your shares for $46.71 per share.What is your holding period return?
A)8.24 percent
B)7.81 percent
C)7.97 percent
D)8.44 percent
E)8.90 percent

Question

Quizplus · Accepted Answer

The holding period return is calculated as [(Ending Price - Beginning Price + Dividends) / Beginning Price] * 100. Here, it is [(46.71 - 43.26 + 0.20) / 43.26] * 100 = 8.44 percent.

Two Years Ago,you Purchased 100 Shares of Stock in ABC