SIE Exam Practice Question 792
Question: 792
Christine purchased 100 shares of Alpha stock for $50 per share. At the end of two years, she sold the shares for $70 per share. In the first year, the stock did not pay a dividend. In the second year, the stock paid a $3 dividend. What was the holding period return of Christine's investment?
Correct Answer: D
Explanation:
HPR = [($7,000 + $300) - $5,000] รท $5,000 = 0.46 = 46%
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