On January 1, you purchased 1,000 shares of a stock at $55 ½ per share. A year later, you sold your entire position at $59 ¾ per share. During the year, the stock paid dividends of $1.50 per share.
1- Compute your HPR and HPY on this investment.
2- Compute the annualized HPR and annualized HPY on this investment.
3- Refer to your answers for section (a) above to calculate the dividend yield and the capital gain.