QUESTIONS 19 THROUGH 32 RELATE TO QUANTITATIVE METHODS

26. An investor purchases 100 shares of stock at a price of $40 per share. The investor holds the

stock for exactly one year and then sells the 100 shares at a price of $41.50 per share. On the

date of sale, the investor receives dividends totaling $200. The holding period return on the

investment is closest to:

A. 3.75%.

B. 8.43%.

C. 8.75%.