Assume you earn quarterly returns on a stock investment of $100 at the beginning of the years, as shown in the Table on the right. As someone worried about your retirement, you decide to reinvest the dividends earned each quarter. Calculate the annual holding period return.

End of: Quarter 1 Quarter 2 Quarter 3 Quarter 4   

Dividend (compounded) $1  $1  $1  $1   

Stock Price $98  $101  $102 $99   

Quarterly HPR -1% 4.08% 1.98% -1.96%   

Annual HPR     ? 

Answer rating: 100% (QA)

Heres how we can do it 1 Calculate the ending value for each quarter Quarter Dividend Stock Price ... View the full answer