Exhibit 1-3
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)
The common stock of XMen had the following historic prices. $$\begin{array} { l l }
\text { Time } & \text { Price of XMen } \
\hline 3 / 01 / 2004 & 50.00 \
3 / 01 / 2005 & 47.00 \
3 / 01 / 2006 & 76.00 \
3 / 01 / 2007 & 80.00 \
3 / 01 / 2008 & 85.00 \
3 / 01 / 2009 & 90.00
\end{array}$$
-Refer to Exhibit 1-3. What was your holding period return for the time period 3/1/2004 to 3/1/2009?
A) 0.1247
B) 1.8
C) 0.1462
D) 0.40
E) 0.25

Question

Exhibit 1-3
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)
The common stock of XMen had the following historic prices. $$\begin{array} { l l } 
\text { Time } & \text { Price of XMen } \
\hline 3 / 01 / 2004 & 50.00 \
3 / 01 / 2005 & 47.00 \
3 / 01 / 2006 & 76.00 \
3 / 01 / 2007 & 80.00 \
3 / 01 / 2008 & 85.00 \
3 / 01 / 2009 & 90.00
\end{array}$$
-Refer to Exhibit 1-3. What was your holding period return for the time period 3/1/2004 to 3/1/2009?
A) 0.1247
B) 1.8
C) 0.1462
D) 0.40
E) 0.25

Quizplus · Accepted Answer

The holding period return is calculated as (Ending Price - Beginning Price) / Beginning Price. For XMen, it is (90 - 50) / 50 = 0.8 or 80%. Adding 1 to account for the initial investment gives a total return of 1.8.

Exhibit 1-3 USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

Exhibit 1-3
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)