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adotey adotey
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2 years ago
Jason purchased ABC stock at $40 per share and DEF stock at $35 per share on the same day in 2020.  Exactly 6 months later, the ABC stock is worth $42.00 per share and has not paid a dividend while the DEF stock is worth $36 per share and has paid 2 quarterly dividends of $0.50 each.  The holding period returns are

▸ ABC, $2.00 and DEF $2.00.

▸ ABC 5% and DEF 2.9%.

▸ ABC 5% and DEF 5.7%.

▸ The holding period return cannot be determined because we do not know the discount rate.
Textbook 
Fundamentals of Investing

Fundamentals of Investing


Edition: 14th
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rl679rl679
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adotey Author
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I appreciate what you did here, answered it right Smiling Face with Open Mouth
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Thank you, thank you, thank you!
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