HPR annual percentage rate

Business & Finance
Tutor: None Selected Time limit: 1 Day

You purchased 250 shares of General Motors stock at a price of $88.66 two years ago. You sold all stocks today for $78.44. During this period the stock paid dividends of $5.25 per share. What is your annualized holding period return (annual percentage rate)?

Oct 3rd, 2015

Thank you for the opportunity to help you with your question! IF you have any clarification, please don't hesitate to ask and I will do my best to answer. ++++++++++++

250*(78.44-88.66+5.25) / (250*78.44) = -1242.50 / 19610 = -6.34%

HPR = [squareroot(1-6.34%)] - 1 = -3.22%

Please let me know if you need any clarification. I'm always happy to answer your questions.
Sep 19th, 2015

Hi, the answer you came up with is wrong. It's suppose to be -2.80. I'm trying to figure out how my professor came up with this answer. 

Sep 19th, 2015

Hi,

I'll recalculate.

Sep 19th, 2015

Revision:

HPR = -2.8%

20150919 1176196 HPR.xlsx

Sep 19th, 2015

Are you studying on the go? Check out our FREE app and post questions on the fly!
Download on the
App Store
...
Oct 3rd, 2015
...
Oct 3rd, 2015
Dec 6th, 2016
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer