Question
Use the following to answer questions 12. You recently sold shares of AAA, Inc. from your portfolio of thirty stocks. You assess the return performance
Use the following to answer questions 12.\ You recently sold shares of AAA, Inc. from your portfolio of thirty stocks. You assess the return performance of AAA, with specific trade information given below.\ AAA shares were purchased for $40.00 per share.\ At the time of purchase, based on your research, you expected to sell for $60.00 per share at the end of a 2-year holding period.\ Exactly two years after the purchase date, the shares were sold for $50.00 per share.\ No dividends were paid by AAA over the 2-year holding period.\ 1. What is the expected two-year holding period return for AAA at the time of purchase?\ 2. What is the realized two-year holding period return for AAA?
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