Question

In: Finance

You put up $40 at the beginning of the year for an investment. The value of...

You put up $40 at the beginning of the year for an investment. The value of the investment grows 4% and you earn a dividend of $3.00. Your HPR was ____.

Solutions

Expert Solution

HPR = (Final Price - Initial Price + Dividend)/Initial Price

Initial Price = $40

Final Price = $40 * (1 = 4%) = $41.6

HPR = ($41.6 - $40 + $3)/$40 = 11.50%


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