Question

You put up $50 at the beginning of the year for an investment. The value of the investment grows 4% and you earn a dividend of $3.50. Your HPR was ____.

Answer 1

Answer:

My HPR was 11%

Explanation:

Investment Value at Beginning of the yer = $50

Growth rate = 4%

Holding period Return = Dividend + return on investment value

Holding period Return = $3.50 + ( $50 x 4% )

Holding period Return = $3.50 + $2

Holding period Return = $5.50

Holding Period Return Rate = ( $5.5 / $50 ) x 100

Holding Period Return Rate = 11%

So, my HPR was 11%