Information about three securities appears below.

a. Assuming interest and dividends are paid annually, calculate the annual holding period return on each security.
b. During the year management of Stock 2 spent $10 million, or$0.50 a share, repurchasing 7.7 million of the company€™s shares. How, if at all, does this information affect calculation of the holding period return on Stock 2?

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Beninni m-of-Year Pice End-of-Year Price Interest Dividend Pai Stock 1 Stock 2 Bond 1 $4250 1.25 $1,020 $46.75 1.36 $1,048 1.50 0.00 $41.00