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Suppose you buy stock at a price of $65 per share. Five months later, you sell it for $69. You also received a dividend of $0

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Answer #1

Ret Earned = [ [ Sell Price - Buy price ] + Div ] / Buy Price

= [ [ 69 - 65 ] + 0.72 ] / 65

= [ 4 + 0.72 ] / 65

= 4.72 / 65

= 0.7262

Annualized ret = Earned Ret * 12 / Holding Period

= 0.7262 * 12 / 5

= 0.1743 i.e 17.43%

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