Christopher purchased 200 shares of ABC stock at $21.25 per share. After nine months, he sold all of his shares at a price of $19.88 a share. Jake received a total of $0.55 per share in dividends during the time he owned the shares. Jake's holding period return is
A) -6.4%.
B) -3.9%.
C) 2.6%.
D) 9.7%.

Question

Quizplus · Accepted Answer

The holding period return is calculated as: [(Ending Price + Dividends - Initial Price) / Initial Price] * 100. Here, it is: [($19.88 + $0.55 - $21.25) / $21.25] * 100 = -6.4%.

Christopher Purchased 200 Shares of ABC Stock at $21