Question

(Holding- peroid returns) fromthe price data that follow, compute the holding- peroid returns for periods 2 through 4

PERIOD STOCK PRICE

1 $10

2 $13

3 $11

4 $15

A.) The holding period return is period 2 for the stock is () % round to two decimal places

B.)The holding period return is period 3 for the sock is ()% round to two decimal places

C.) The holding period return is period 4 for the stock is ()%round to two decimal places

Answer 1

A.) The holding period return is period 2 for the stock is () % round to two decimal places

HPR for period 2 = (Stock price in Period 2 - Stock Price in Period 1)/Stock Price in Period 1

HPR for period 2 = (13 - 10)/10

HPR for period 2 = 30.00%

B.)The holding period return is period 3 for the sock is ()% round to two decimal places

HPR for period 3 = (Stock price in Period 3 - Stock Price in Period 1)/Stock Price in Period 1

HPR for period 3 = (11 - 10)/10

HPR for period 3 = 10.00%

C.) The holding period return is period 4 for the stock is ()%round to two decimal places

HPR for period 4 = (Stock price in Period 4 - Stock Price in Period 1)/Stock Price in Period 1

HPR for period 4 = (15 - 10)/10

HPR for period 4 = 50.00%