George Wilson purchased Bright Light Industries common stock for $47.50 on January 31, 2016. The firm paid dividends of $1.10 during the last 12 months. George sold the stock today (January 30, 2017) for $54.00. What is George's holding period return?

Question

Quizplus · Accepted Answer

The holding period return (HPR) is calculated as [(Ending Price - Beginning Price + Dividend) / Beginning Price] * 100. Here, it is [($54.00 - $47.50 + $1.10) / $47.50] * 100 = 16.00%.

George Wilson Purchased Bright Light Industries Common Stock for $47