Use the Information Below for the Following Problem(S)
You purchased 100 shares of GE common stock on January 1, for $29 a share. A year later you received $1.25 in dividends per share and you sold it for $28 a share.
-Refer to Exhibit 1.9.Calculate your holding period yield (HPY)for this investment in GE stock.
A) -0.0345
B) -0.0090
C) 0.0086
D) 0.0643
E) 0.0804

Question

Quizplus · Accepted Answer

HPY = (28 + 1.25)/29 - 1 = 1.0086 - 1 = 0.0086