What is holding period return

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Ethan purchases 100 shares of JPMorgan (JPM) stock at $43 per share. While he owns the stock, he receives four dividend payments of $0.30 each per share. He then sells the stock for $48 per share.

a. What income did he earn in the holding period? [Hint: Be sure to note how the text differentiates betweenincome and capital gains.]

b. What capital gain did he earn over the holding period?

c. What was his holding period return (HPR), in percent? Show work.

Reference no: EM131190512

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