Assume You Buy a Share of Stock for $20 and Hold

question 21

Multiple Choice

Assume you buy a share of stock for $20 and hold it for one year. During the year you receive $1.20 in dividends. At the end of the year you sell the stock for $19. What is your holding period return pre-tax) ?

• A)6.32%
• B)1%
• C)6.0%
• D)5.0%