Question

From the price data that​ follow, compute the​ holding-period returns for periods 2 through 4.

PERIOD		STOCK PRICE
1		​$7
2		$14
3		$13
4		$18

The​ holding-period return in period 2 for the stock is? %

​(Round to two decimal​ places.)

The​ holding-period return in period 3 for the stock is? %

The​ holding-period return in period 4 for the stock is? %

Answer 1

Answer to Part 1:

Holding Period Return in Period 2 = ($14 - $7) / $7 * 100
Holding Period Return in Period 2 = 100%

Answer to Part 2:

Holding Period Return in Period 3 = ($13 - $14) / $14 * 100
Holding Period Return in Period 3 = -7.14%

Answer to Part 3:

Holding Period Return in Period 4 = ($18 - $13) / $13 * 100
Holding Period Return in Period 4 = 38.56%