Information about three securities appears below

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, 0.00

Stock 3: 1020, 1048, 41.00

A) Assuming interst and dividens are paid annually, calculate the annual holding period return on each security.

B) During the year management of stock 2 spend 10 millino, or .50 share, repurchasing 7.7 million of the companys shares. How, if at all, does this information affect calculation of the holding period return on stock 2?