Multiple Choice
Josh purchased 200 shares of HAR stock at $25.30 per share and sold it 9 months later for $27.20. HAR does not pay a dividend. At the same time, he bought 500 shares of WIG for
$9) 15 a share. He sold WIG for $9.65 one year later. During the year, WIG paid 4 quarterly dividends of $0.07 each. The most useful way to compare the holding period returns on these stocks is to
A) Multiply the 9 month return on HAR by 12/9.
B) Divide the 9 month return on HAR by 9/12.
C) Divide the 1 year return on WIG by 9/12.
D) The two holding period returns cannot be compared.
Correct Answer:

Verified
Correct Answer:
Verified
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