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Suppose XYZ company sells shares through an initial public offering ( IPO ) at an offer price of $ 2 0 . At the close

Suppose XYZ company sells shares through an initial public offering (IPO) at an offer price of $20. At the close of its
first day of trading, the share price was $35. An investor purchased the stock at the offer price and held it for the full year. The
investor sold the stock at the end of the year when the share price was $40. Meanwhile, the investor also received a $5
dividend. Which of the following statements is the most accurate?
Holding period return is 125% which consists of 25% dividend yield and 100% capital gain yield
Holding period return is 125% which consists of 100% dividend yield and 25% capital gain yield
Holding period return is 100% which consists of 75% dividend yield and 25% capital gain yield
Holding period return is 100% which consists of 25% dividend yield and 75% capital gain yield
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