Question

You put up $50 at the beginning of the year for an investment. The value of the investment grows 5% and you earn a dividend of $4.00. Your HPR was ____.

Answer 1

13%

Step-by-step explanation:

HPR = 4.00/50 + 5%

HPR = 0.08 + 5%

HPR = 8% + 5%

HPR = 13%

Thus, my holding period return is 13%