Question

You purchased a share of stock for $50. Two years later you received $2 as dividend and sold the share for $59. What was your holding period return

Answer 1

The answer is =22%

Step-by-step explanation:

Holding period return is the total return from asset or investment portfolio over a period of time. Holding period return is expressed as a percentage.

Its formula is:

[(value at the end of the period- original value) + income or dividend]/ original valuex 100

[2 + (59 - 50)] / 50x 100

(2 + 9 ) / 50x 100

11/50 x 100

=22%