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Beginning of year Price End of year Price Interest/dividend paid Stock1 $ 42.50 $ 46.75 $ 1.50 Stock2 $ 1.25 $ 1.36 $ 0.00 Stock3

Beginning of year Price End of year Price Interest/dividend paid Stock1 $ 42.50 $ 46.75 $ 1.50 Stock2 $ 1.25 $ 1.36 $ 0.00 Stock3 $1,020 $ 1,048 $ 41.00 a. Assuming interest and dividends are paid annually, calculate the annual holding period return on each security. b. During the year, management of Stock 2 spent $10 million or $0.50 a share, repurchasing 7.7 million of the company's shares. How, if at all, does this information affect calculation if the holding period return on Stock 2

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