Gary bought a share of stock for $15.75 that paid a dividend of $.45 and sold three months later for $18.65.What was his dollar profit or loss and holding period return?
A)$2.90,18.41%
B)$3.35,21.27%
C)-$2.90,-18.41%
D)$.45,2.86%

Question

Quizplus · Accepted Answer

Gary's dollar profit is calculated by adding the dividend received to the difference between the selling price and the purchase price: ($.45 + ($18.65 - $15.75)) = $3.35. The holding period return is the profit divided by the purchase price: ($3.35 / $15.75) * 100 = 21.27%.

Gary Bought a Share of Stock for $15