CFA Practice Question

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CFA Practice Question

An analyst gathers the following information about a common stock investment:

Stock purchase: 48.00
Cash dividend received: 4.00
Stock sale: 54.00

The holding period return is closest to ______.
A. 12.5%
B. 15.75%
C. 20.8%
Explanation: HPR = (54 - 48 + 4) / 48 = 20.8%. The HPR is not annualized for holding periods shorter than a year.

User Contributed Comments 1

User Comment
Binkey HPR is not annualized for periods shorter than a year
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