- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 1. Rates and Returns
- Subject 2. Rates of Return
CFA Practice Question
A share, currently trading at $80, was purchased a month ago for $75. During the month, a cash dividend of $1 was paid. Calculate the holding period return.
B. 8%
C. 5%
A. 7%
B. 8%
C. 5%
Correct Answer: B
Pt = 80, Pt-1 = 75 and Dt = 1, Rt = (80 - 75 + 1) / 75 = 8%
User Contributed Comments 2
User | Comment |
---|---|
mbowa | wish even the exams were this straight forward |
msk500 | I know. The tricky bit is whether it matters if the return is reinvested or not. Does it matter? |