Question

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?

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%.