An investor purchases one share of stock for $550. Six months later, the stock is sold...
An investor purchases one share of stock for $550. Six months later, the stock is sold for $693. The investor received dividends totaling $47 over the six-month holding period.
1.) What was the investor’s holding period percentage return?
2.) What was the investor’s annualized percentage return?
Homework Answers
1. Holding period Return is
($693-$550)+47/550
=34.54%
2. Annualized return
{(1+.3454)^1/.05 }-1 = 81.01%
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