Suppose you invested $2, 800 in a stock with a share price of $70. After one year, the stock price per share is $98. Also, for each share, you received a $2.80 dividend. What was your total dollar return? What is your total Percent Return: You buy 400 shares of Ford Company at $60 per share. Three months later, you sell these shares for $63 per share You received no dividends. What is your holding Period Percentage Return? What is your annualized return? Holding Period Percentage Return = (p_t + 1 - p_t)/p_t Effective Annual Return (EAR): The return on an investment expressed on an "annualized" basis. Key Question: What is the number of holding periods in a year? 1 + EAR = (1 + Holding Period Percentage Return)^m m = the number of holding periods in a year