USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
Assume you bought 100 shares of NewTech common stock on January 15, 2003 at $50.00 per share and sold it on January 15, 2004 for $40.00 per share.
-Refer to Exhibit 1.1. What was your holding period yield?
A) -10%
B) -0.8
C) 25%
D) 0.8
E) -20%

Question

Quizplus · Accepted Answer

The holding period yield is calculated as (Ending Price - Beginning Price) / Beginning Price. Here, it is ($40 - $50) / $50 = -$10 / $50 = -0.20 or -20%.