An investor purchased 1,000 shares of AZT stock on January 5,2012 for $83.25 per share.On March 20,a dividend of $0.75 per share was paid.Fifty days later,on May 9,2012,the stock was sold for $85.00.What is the holding period return? Assume the dividend is not reinvested.

Question

Quizplus · Accepted Answer

The holding period return (HPR) can be calculated as follows: HPR = [(P1 - P0) + D] / P0, where P0 is the initial price of the stock, P1 is the final price, and D is the dividend received. Here, P0 = $83.25, P1 = $85.00, and D = $0.75. So, HPR = [($85.00 - $83.25) + $0.75] / $83.25 = $2.50 / $83.25 = 0.03, or 3.0%.

An Investor Purchased 1,000 Shares of AZT Stock on January