Ralph bought a share of stock for $31.50 that paid a dividend of $.85 and sold six months later for $27.65. What was his dollar profit or loss and holding period return?

A) -$3.00, -9.52%
B) -$3.85, -12.22%
C) -$.85, -2.70%
D) -$3.85, -9.52%

Answer: A
Explanation: A) Profit = Ending Value + Distributions - Original Cost
Profit = $27.65 + $0.85 - $31.50 = -$3.00.
HPR = = = -9.52%.

Business

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