On January 1st,an investor purchases security A for $105.Over the next four months,dividends totaling $15 were paid on security A.On March 31st,security A was sold for $120.What is the holding period return for security A?

Question

Quizplus · Accepted Answer

The holding period return is calculated as (Ending Value - Initial Value + Dividends) / Initial Value. Here, it is ($120 - $105 + $15) / $105 = $30 / $105 = 28.5%.

On January 1st,an Investor Purchases Security a for $105