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27 October, 00:07

You purchased a share of stock for $20. one year later, you received $1 as a dividend and sold the share for $29. what was your holding-period return?

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  1. 27 October, 00:22
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    Holding-period return is the rate of return (money made) on an asset or portfolio during the entire time it was held.

    Dividend - $1

    Share sold - $29

    Purchased - $20

    (Dividend+Share sold-purchased) / (purchased)

    ($1+$29-$20) / $20=0.5000 x100 = 50%

    The holding-period return was 50%.
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