Tim bought ACME stock at $40 per share and BET stock at $35 per share on the same day in 2020. Exactly 6 months later, the ACME stock is worth $42.00 per share and has not paid a dividend while the BET stock is worth $36 per share and has paid 2 quarterly dividends of $0.50 each. The holding period returns are:

		ACME, $2.00 and BET $2.00.
		ACME 5% and BET 2.9%.
		ACME 5% and BET 5.7%.
		The holding period return cannot be determined because we do not know the discount rate.