QUESTION
What are the two components of a total holding period return?
he beginning of the holding period (price at which the share is purchased)D = Dividend received during the holding periodAlsoFor example if a share is purchased for $ 100 by an investor. At the end of 1 year he sells the share for $ 120. During the year the investor receives the dividend of $10. HereDividend yield = $10/$100 = 0.1Capital gain = $120 $100/ $100 = 0.2Total holding period return = 0.1 0.2=0.3 or 30%
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