What is your holding period return for the two years what


Given the following information about Stock A: P0 = $39.50 D1 = $3.25 paid at end of year D2 = $3.25 paid at end of year Suppose that you can invest D1 at an annual rate of 5% over the second year and after collecting dividend D2 you sell the stock for $41.75 at the end of year 2. a. What is your holding period return for the two years? b. What is the geometric mean annual return?

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Portfolio Management: What is your holding period return for the two years what
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