You put up $20 at the beginning of the year for an investment. The value of the investment grows ...
You put up $20 at the beginning of the year for an investment. The value of the investment grows 3% and you earn a dividend of $2.50. What is your holding period return?
Homework Answers
Price = 20
The Value of investment = 20*(1+3%) =20.6
Dividend = 2.50
Holding Period Return = (New Value + Dividend - Price)/Price =(20.6
+2.50-20)/20 = 15.5%
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