Question

Arun buys in stock at rs 20 and sells at rs 25 after 10 months. during this period, he receive a dividend of rs 5 on his investments. calculate the holding period return

Answer 1

Selling price = 25

Cost = 20

Dividend = 5

We need to calculate the holding period return =

Selling price - Cost + Dividend

-------------------------------------------

Cost

= 25-20+5/20 = .5 => 50%

Answer 2

"Calculate HPR Formula as follows:

Holding Period Return is returning an asset after holding in for a period of time. It is expressed in percecntage.

$HPR=\frac { (Income\quad +\quad end\quad of\quad period\quad value)\quad -\quad original\quad value }{ original\quad value } \times 100$

HPR = Selling Price - 25, Cost Price = 20, Dividend = 5,  

$=\quad \frac { 5+25- 20 }{ 20 } \quad =\quad 0.5\quad =\quad 0.5\times 100\quad =\quad 50\quad percentage$"