Use the Information Below for the Following Problem(S)
Assume that you hold a two stock portfolio. You are provided with the following information on your holdings:
$$\begin{array} { c c c c }
\text { stack } & \text { shares } & \text { Price(t) } & \text { Price } ( \mathrm { t } + 1 ) \
\hline 1 & 15 & 10 & 12 \
2 & 25 & 15 & 16
\end{array}$$
-Refer to Exhibit 1.8.Calculate the HPY for stock 1.
A) 10%
B) 20%
C) 15%
D) 12%
E) 7%

Question

Use the Information Below for the Following Problem(S)
Assume that you hold a two stock portfolio. You are provided with the following information on your holdings:
 $$\begin{array} { c c c c } 
\text { stack } & \text { shares } & \text { Price(t) } & \text { Price } ( \mathrm { t } + 1 ) \
\hline 1 & 15 & 10 & 12 \
2 & 25 & 15 & 16
\end{array}$$
-Refer to Exhibit 1.8.Calculate the HPY for stock 1.
A) 10%
B) 20%
C) 15%
D) 12%
E) 7%

Quizplus · Accepted Answer

The Holding Period Yield (HPY) for stock 1 is calculated as: $(\text{Price}(t+1) - \text{Price}(t)) / \text{Price}(t) = (12 - 10) / 10 = 0.20$ or 20%.

Use the Information Below for the Following Problem(S) Assume That

Use the Information Below for the Following Problem(S)
Assume That