Question

The price of a large cap equity ETF is $45 at the beginning of the year...

The price of a large cap equity ETF is $45 at the beginning of the year and $54 at the end of the year. If the ETF paid a $1.75 cash dividend, what is the holding period return for the year? Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box.

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Answer #1

Holding period return=(End value-Beginning value+Dividend)/Beginning value

=(54-45+1.75)/45

which is equal to

=23.89(Approx).

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