Lauren purchased a stock for $28 a share and sold it six months later for $31.While she owned the stock, Lauren received two quarterly dividends of $0.35 per share.Brittany's holding period return on this stock is
A)13.2%.
B)10.7%.
C)11.9%.
D)26.4%.

Question

Quizplus · Accepted Answer

The holding period return is calculated as follows:(Sale price + Dividends - Purchase price) / Purchase price= (31 + 0.35 + 0.35 - 28) / 28= 3.7 / 28= 0.132 or 13.2%

Lauren Purchased a Stock for $28 a Share and Sold