On January 1, Stacy's Portfolio Was Valued at $96,534

question 81

Multiple Choice

On January 1, Stacy's portfolio was valued at $96,534. During the year Stacy received $3,285 in interest and $4,100 in dividends. She also sold one stock at a gain of $850. The value of the portfolio on December 31 of the same year was $113,201. At the end of June, Stacy withdrew $5,000 from the portfolio. What is the holding period return for the year?

• A) 25.1%
• B) 25.8%
• C) 26.5%
• D) 27.2%

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Definitions:

Income Tax Rate

The fraction of income that a business or individual must pay as tax.

After-Tax Discount Rate

The net discount rate applied to a project or investment after accounting for the effects of taxes.

Straight-Line Depreciation

An equal expense allocation method over the anticipated productive life of an asset.

Initial Investments

The upfront costs associated with starting a new project, business venture, or investment, crucial for calculating future returns and break-even points.