Question: Problem 6: Information about securities below: Stock 1 $42.50 $46.75 $1.50 Stock 2 $1.25 $1.36 $0.00 Stock 3 $1,020 $1,048 $41.00 Assuminginterestanddividendsarepaidannually,calculatetheannualholdingperiodreturnoneachsecurity. During the year,

Problem 6: Information about securities below:

Stock 1

$42.50

$46.75

$1.50

Stock 2

$1.25

$1.36

$0.00

Stock 3

$1,020

$1,048

$41.00
  • Assuminginterestanddividendsarepaidannually,calculatetheannualholdingperiodreturnoneachsecurity.
  • During the year, management of Stock 2 spent $10 million, or $0.50 a share, repurchasing 7.7 million of the companys shares. How, if at all, does this information affect calculation of the holding period return on Stock 2?

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