Ralph bought a share of stock for $31.50 that paid a dividend of $.85 and sold six months later for $27.65.What was his dollar profit or loss and holding period return?
A)-$3.00,-9.52%
B)-$3.85,-12.22%
C)-$.85,-2.70%
D)-$3.85,-9.52%

Question

Quizplus · Accepted Answer

The dollar profit is the difference between the selling price and the purchase price, which is $27.65 - $31.50 = -$3.85. The holding period return is the dollar profit divided by the purchase price, which is -$3.85 / $31.50 = -12.22%.

Ralph Bought a Share of Stock for $31