Three years ago, you purchased a stock at a price of $33.48. the stock paid annual dividends of $.60 per share. today, the stock is worth $35.20 per share. what is your holding period return?

10.51%

Step-by-step explanation:

Data provided in the question:

Period Initial value = $33.48

Period end value = $35.20

Annual dividend paid = $0.60

Total time = 3 years

Therefore,

the total dividend paid i.e the income = 3 × $0.60 = $1.80

Now,

The holding period is given as:

=

=

= 10.51%

probability for j is 1/4

while

a is 1/6