If Stock a Had a Price of $120 at the Beginning

question 4

Multiple Choice

If Stock A had a price of $120 at the beginning of the year, $150 at the end of the year and paid a $6 dividend during the year, what would be the annualized holding period return?

• A)36%
• B)30%
• C)24%
• D)none of the above

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Definitions:

Interest Paid

The amount paid by a borrower to a lender for the privilege of borrowing money, typically expressed as an annual percentage rate.

Effective Interest Rate

The true rate of simple interest.

Contract Interest Rate

The agreed-upon rate of interest that will be charged or paid on a financial contract, such as a loan or bond.

Issued at Discount

When a bond or other security is sold for less than its face value.