If the sum of dividends is $45,000,gains in principal invested are $2,500,and the original cost is $365,500,what is the holding period return?
A)Approximately 13%
B)Approximately 11.5%
C)Approximately 11%
D)Approximately 10.5%
E)None of the above

Question

Quizplus · Accepted Answer

The holding period return is calculated as (Dividends + Gains in Principal) / Original Cost. In this case, the holding period return is ($45,000 + $2,500) / $365,500 = $47,500 / $365,500 = 0.13, or approximately 13%.

If the Sum of Dividends Is $45,000,gains in Principal Invested