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Basic Question 10 of 12

A share, currently trading at $80, was purchased a month ago for $75. During the month, a cash dividend of $1 was paid. Calculate the holding period return.

A. 7%
B. 8%
C. 5%

User Contributed Comments 2

User Comment
mbowa wish even the exams were this straight forward
msk500 I know. The tricky bit is whether it matters if the return is reinvested or not. Does it matter?
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Craig Baugh

Craig Baugh

Learning Outcome Statements

calculate and interpret different approaches to return measurement over time and describe their appropriate uses;

CFA® 2024 Level I Curriculum, Volume 1, Module 1.