Holding period return of position

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Assume you purchased 1,000 shares of Pharma Group, a pharmaceuticals manufacturer, at the market's opening price of $22/share on January 4, 2019, and held the position for the following two years. Further assume you reinvested back into the stock at its closing price on that same day the dividends were paid [Note: you may assume you can hold fractional shares rounded to two decimal places]. You then sold the entire position at the closing price of $23.96 on January 3, 2021. Here are the dividends you received:

Dividend Date Dividend per Share Stock's Closing Price

May 1, 2019 $0.299412 $19.49

April 29, 2020 $0.280880 $21.39

What was the holding period return of this position? What was the effective annualized return?

Reference no: EM132826059

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