USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 32

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
You purchased 100 shares of GE common stock on January 1, for $29 a share. A year later you received $1.25 in dividends per share and you sold it for $28 a share.
-Refer to Exhibit 1.7. Calculate your holding period yield (HPY) for this investment in GE stock.

• A) -0.0345
• B) -0.0090
• C) 0.0086
• D) 0.0643
• E) 0.0804

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Definitions:

Market Interest Rates

The prevailing rate at which borrowers are willing to borrow money and lenders are willing to lend in the open market.

Investment Projects

Initiatives undertaken by individuals, companies, or governments to invest capital with the expectation of future financial returns.

Digital Cameras

Electronic devices that capture and store photographs digitally, allowing for immediate viewing and eliminating the need for film processing.

Investment

The process of distributing funds or resources with the aim of achieving income or financial gain.