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vanessavz vanessavz
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A year ago
Josh purchased 200 shares of HAR stock at $25.30 per share and sold it 9 months later for $27.20.  HAR does not pay a dividend.  At the same time, he bought 500 shares of WIG for $9.15 a share.  He sold WIG for $9.65 one year later.  During the year, WIG paid 4 quarterly dividends of $0.07 each.  The most useful way to compare the holding period returns on these stocks is to

▸ Multiply the 9 month return on HAR by 12/9.

▸ Divide the 9 month return on HAR by 9/12.

▸ Divide the 1 year return on WIG by 9/12.

▸ The two holding period returns cannot be compared.
Textbook 

Fundamentals of Investing


Edition: 14th
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neginakbarinneginakbarin
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A year ago
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Multiply the 9 month return on HAR by 12/9.

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