You put up $50 at the beginning of the year for an investment. The value of...

You put up $50 at the beginning of the year for an investment. The value of the investment grows 5.0%, and you earn a dividend of $4.4. What was your holding period return (HPR)?

Enter answer in percents, accurate to two decimal places.

Solutions

Expert Solution

Dividend yield=Dividend/Beginning value

=4.4/50

=8.8%

Hence holding period return=(End value-Beginning value+Dividend)/Beginning value

=Dividend yield+Capital gains yield

=(8.8+5)

=13.8%

jeff jeffy answered 2 years ago

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