Question

You put up $50 at the beginning of the year for an investment. The value of the investment grows 4% and you earn a dividend of $3.50. Your HPR was ____. A. 4% B. 3.5% C. 7% D. 11%

Answer 1

Answer: 11%

Explanation:

From the question, we are informed that an individual put up $50 at the beginning of the year for an investment and that the value of the investment grows 4% and the person earn a dividend of $3.50.

The HPR will be calculated as :

= 4% + (3.50/50)

= 4% + 0.07

= 0.04 + 0.07

= 0.11

= 11%