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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Business

Jaeden Cowan

9 March, 07:29

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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Maggie Glenn · Answer 1

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%.