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An investor buys shares of a firm at $10.00. A year later she receives a dividend of $0.96 and sells the shares at $9.00. What is her holding period return on this investment?

A)
-0.8%.
B)
+1.2%.
C)
-0.4%.



The holding period return = ($0.96 + $9.00 / $10.00) – 1 = –0.004 or –0.4%

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