CFA Practice Question

There are 96 practice questions for this study session.

CFA Practice Question

ABC Corp. is currently trading at $74.15. You expect the stock to trade at $81.84 by the end of the year. If however, in one year, the stock pays a dividend of $2.15 and you sell it later that day at $79.64, what would be your holding period return?
A. 7.4%
B. 10.3%
C. 13.3%
Explanation: HPR = [(P1 - P0) + D]/P0 = [(79.64 - 74.15) + 2.15]/74.15 = 10.3%

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