Chapter 5 Problem 6
Information about 3 securities is presented here:
Security	Beginning-of-Year Price	End-of-Year Price	Interest/Dividend Paid
Stock 1	$ 42.50	$ 46.75	$ 1.50
Stock 2	$ 1.25	$ 1.36	$ -
Bond 1	$ 1,020.00	$ 1,048.00	$ 41.00
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?