Rose bought a share of stock for $64.50 that paid a dividend of $.50 a

Rose bought a share of stock for $64.50 that paid a dividend of $.50 and sold nine months later for $64.00. What was her dollar profit or loss and holding period return?

A) $0.50, 0.78%
B) -$0.50, -0.78%
C) $0.00, 0.00%
D) There is no correct solution to this question.

ANSWER

Answer: C
Explanation: C) Profit = Ending Value + Distributions – Original Cost
Profit = $64.00 + $0.50 – $64.50 = $0.00.
HPR = = = 0.00%.