Question

You purchased 300 shares of General Electric stock at a price of $71.83 four years ago. You sold all stocks today for $61.91. During that period the stock paid dividends of $4.56 per share. What is your annualized holding return (annual percentage rate)?

Round the answers to two decimal places in percentage form.

Answer 1

Holding period return = ($61.91 + $4.56 - $71.83) / $71.83 = -0.0746 or -7.46%

Annualized holding period return = HPR/n = -7.46% / 4 = -1.87%