24 months ago, you bought 20 shares of a stock for $38 per share. The price now is a healthy $42. If you sold today, what would be your holding period return?

Enter your answer as a regular percent, rounded to the nearest two decimals. Do not enter percent signs, dollar signs, or commas. If Connect adds those things, that's okay. If you calculate a true negative number, enter with the negative sign. For example, if you calculated 0.07824, you would enter 7.82. Or if you calculated 14.6288%, you would enter 14.63.



The holding period return for the stock is 10.53.

Would you like further details or have any questions?

Here are 5 related questions to expand on this topic:
1. How would the holding period return change if the final stock price were $45?
2. What is the impact of dividends on the holding period return calculation?
3. If transaction fees are considered, how would that affect the overall return?
4. How would the holding period return differ over 5 years compared to 2 years?
5. How is the annualized return different from the holding period return?

**Tip:** To annualize a holding period return, divide by the number of years the investment was held.

24 months ago, you bought 20 shares of a stock for $38 per share. The price now is a healthy $42. If you sold today, what would be your holding period return? Enter your answer as a regular percent, rounded to the nearest two decimals. Do not enter percent signs, dollar signs, or commas. If Connect adds those things, that's okay. If you calculate a true negative number, enter with the negative sign. For example, if you calculated 0.07824, you would enter 7.82. Or if you calculated 14.6288%, you would enter 14.63.

Learn how to calculate the holding period return for a stock purchased at $38 per share and sold at $42 per share after 24 months. This example uses the formula [(Ending Value - Beginning Value) / Beginning Value] * 100 and provides the result rounded to two decimals. Suitable for high school and college finance students.

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