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On January 1st, an investor purchases security A for $105. Over the next four months, dividends...

On January 1st, an investor purchases security A for $105. Over the next four months, dividends totaling $15 were paid on security A. On March 31st, security A was sold for $95. What is the holding period return for security A?

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Answer #1

Hoding Period Return = (Final Value - Initial value + Dividend Received)/Initial Value

HPR = (95 - 105 + 15)/105

HPR = 4.76%

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