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Problem 2-21 Annualized Returns (CFA1) Suppose you buy stock at a price of $81 per share. Three months later, you sell it for $87. You also received a dividend of $O.80 per share. What is your annualized return on this investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Annualized return
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Answer #1
Return for 3 months = (0.80+87-81)/81 = 8.3951%
Annualized return = Return for 3 months*4 = 33.58%
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