NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Investment Landscape
An investor buys 200 shares of an Indian company at Rs 150 each and sells them after one year at Rs 180 each, receiving a dividend of Rs 3 per share during the year. Ignoring taxes and costs, what is the holding period return?
The holding period return is 22%. The investor gains Rs 30 per share from price appreciation and Rs 3 from dividend, a total of Rs 33 on an investment of Rs 150 per share, which equals 22 percent.
- A20.0%
- B22.0%Correct
- C18.0%
- D24.0%
Explanation
Capital gain per share is 180 - 150 = Rs 30 and dividend is Rs 3, so total gain is Rs 33. Return = 33/150 = 22%. Option 20% ignores the dividend; 18% subtracts the dividend instead of adding it; 24% is an unsupported figure.
Did you get it right without looking?
One question tells you little. A timed set on Investment Landscape shows your real accuracy, how long you take and where you lose marks.
More Investment Landscape questions
- Ms. Rao invested Rs 50,000 in a fund. After 2 years the value of her investment is Rs 60,500. Assuming no interim cash flows, what is her co…
- Which of the following asset classes is generally considered to offer the highest liquidity to an investor?
- Which of the following asset classes is generally considered to offer the highest liquidity for an individual investor?
- Which of the following asset classes is generally considered to offer the highest potential for long-term inflation-beating returns, along w…
- An investor's portfolio returned 12% in a year when inflation was 5%. Using the exact (Fisher) relationship, what is the real return, to the…
- An investor wants her savings to retain purchasing power over time. Which risk does she primarily address by choosing assets whose returns t…