Question

In: Finance

Nico bought 100 shares of Cisco Systems stock for $30.00 per share on January 1, 2013....

Nico bought 100 shares of Cisco Systems stock for $30.00 per share on January 1, 2013. He received a dividend of $2.00 per share at the end of 2013 and $3.00 per share at the end of 2014. At the end of 2015, Nico collected a dividend of $4.00 per share and sold his stock for $33.00 per share. What was Nico's realized holding period return?

-36.36%

+36.36%

-40%

+40%

Solutions

Expert Solution

realized holding period return=(end price-beginning price+_dividends)/beginning price

=(33-30+(2+3+4))/30

=40%(D).


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