Homework #5E (HPR, Annualized holding period return, Effective
annual rate on investment)
Question 1
The prices for the White Swan Corporation for the first quarter of the last year are given
below. Find the holding period return (percentage return) for February.
End of the month Stock price
January $93.72
February $104.57
March $110.00
Round the answers to two decimal places in percentage form. (Write the percentage sign
in the "units" box)
($104.57 -$93.72) /$93.72 = 0.1158 = 11.58%
Question 2
You purchased 100 shares of General Motors stock at a price of $104.94 one year ago.
You sold all stocks today for $90.33. During the year, the stock paid dividends of $5.48
per share. What is your holding period return?
Round the answers to two decimal places in percentage form. (Write the percentage sign
in the "units" box)
($90.33 + $5.48 - $104.94)/ $104.94= $-8.70/$104.94= -0.0829 = -8.29%
Question 3
Sarah purchased 100 shares of General Electric stock at a price of $59.65 three months
ago. She sold all stocks today for $64.38. During the year the stock paid dividends of
$3.91 per share. What is Sarah’s holding period return
Round the answers to two decimal places in percentage form. (Write the percentage sign
in the "units" box)
($64.38 + $3.91 - $59.65) / $59.65 = 0.1448 = 14.48%
This study source was downloaded by 100000872281541 from CourseHero.com on 09-28-2023 09:27:08 GMT -05:00
https://www.coursehero.com/file/20945303/Homework-5E-HPR-Annualized-holding-period-return-Effective-annual-rate-on-investment/
annual rate on investment)
Question 1
The prices for the White Swan Corporation for the first quarter of the last year are given
below. Find the holding period return (percentage return) for February.
End of the month Stock price
January $93.72
February $104.57
March $110.00
Round the answers to two decimal places in percentage form. (Write the percentage sign
in the "units" box)
($104.57 -$93.72) /$93.72 = 0.1158 = 11.58%
Question 2
You purchased 100 shares of General Motors stock at a price of $104.94 one year ago.
You sold all stocks today for $90.33. During the year, the stock paid dividends of $5.48
per share. What is your holding period return?
Round the answers to two decimal places in percentage form. (Write the percentage sign
in the "units" box)
($90.33 + $5.48 - $104.94)/ $104.94= $-8.70/$104.94= -0.0829 = -8.29%
Question 3
Sarah purchased 100 shares of General Electric stock at a price of $59.65 three months
ago. She sold all stocks today for $64.38. During the year the stock paid dividends of
$3.91 per share. What is Sarah’s holding period return
Round the answers to two decimal places in percentage form. (Write the percentage sign
in the "units" box)
($64.38 + $3.91 - $59.65) / $59.65 = 0.1448 = 14.48%
This study source was downloaded by 100000872281541 from CourseHero.com on 09-28-2023 09:27:08 GMT -05:00
https://www.coursehero.com/file/20945303/Homework-5E-HPR-Annualized-holding-period-return-Effective-annual-rate-on-investment/
