Question

You purchased a share of stock for $53. One year later you received $3.00 as dividend and sold the share for $52. Your holding-period return was

Answer 1

the holding period return is 3.77%

Step-by-step explanation:

The computation of the holding period return is shown below:

Holding period return is

= (Income + (Selling price - Purchase price)) ÷ Purchase price

= ($3 + ($52 - $53)) ÷ 53

= 3.77%

Hence, the holding period return is 3.77%

We simply applied the above formula so that the correct value could come

And, the same is to be considered