Chapter 5 Problem 6 Information about 3 securities is presented here: Security Stock 1 Stock 2 Bond 1 Questions: 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 $10M, of $.50 per share, repurchasing 7.7 million of the company's shares. How does this information affect calculation of the holding period return of the stock? Beginning-of-Year Price End-of-Year Price Interest/Dividend Paid 42.5 46.75 1.5 1.25 1.36 0 1,020 1,048 41