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Nico bought 100 shares of a company's stock for $22.00 per share on January 1, 2018. He received a dividend of $2.00 per share at
Nico bought 100 shares of a company's stock for $22.00 per share on January 1, 2018. He received a dividend of $2.00 per share at the end of 2018 and $3.00 per share at the end of 2019. At the end of 2020, Nico collected a dividend of $4.00 per share and sold his stock for $18.00 per share. What was Nico's realized holding period return? What was Nico's compound annual rate of return? (Hint: calculate an IRR). Explain the difference. 24.7% 22.7% 23.7% 25.7% Diff: 2 Topic: Return Defined Learning Obj.: LG 1 Learning Outcome: F-11 AACSB: Reflective Thinking
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