CFA Practice Question

There are 266 practice questions for this study session.

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.

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?
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