NISM Certifications · NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors · Introduction to Securities Markets
An investor buys a share at ₹400, receives a dividend of ₹20 during the year, and sells it at ₹440 at year end. What is the total holding period return?
The total holding period return is 15%. The capital gain is ₹40 (440 minus 400) and the dividend is ₹20, giving a total gain of ₹60 on an investment of ₹400. Dividing 60 by 400 gives 15 percent.
- A10%
- B5%
- C15%Correct
- D12.5%
Explanation
Capital gain = 440 - 400 = ₹40. Add dividend of ₹20 to get ₹60 total gain. Return = 60/400 = 15%. Counting only the capital gain gives 10%, which ignores the dividend.
Did you get it right without looking?
One question tells you little. A timed set on Introduction to Securities Markets shows your real accuracy, how long you take and where you lose marks.
More Introduction to Securities Markets questions
- In the Indian securities market, which segment is primarily used by companies to raise fresh capital by issuing new securities to investors?
- In the Indian securities market, which of the following best describes the primary function of the secondary market?
- Which of the following is a money market instrument in India?
- Which of the following instruments is a money market instrument rather than a capital market instrument?
- An investor buys 200 shares at Rs 500 each, and receives a dividend of Rs 10 per share during the year. At year end the share price is Rs 54…
- Which statement about a rights issue by a listed company is correct?