Hello, looking for some help with the following:
Using closing prices and dividend data, compute the monthly holding period returns for each of the three stocks. Assume the stock is purchased at the close of the market on the indicated date, and that dividends are received on the ex-dividend date.
Stock Prices
Dividend: Stock B
I just used the dividend for stock B. With whatever help I receive I can calculate HPR for the others. My main issue is that I am taking (P1 - P0)/P0. For example in stock B, I am using (35-27.93)/27.93. However, if I am calculating monthly HPR should I be doing each month and incorporating the dividend? So for the stock B would it instead look like this: (.28 + 32.39-27.93)/27.93? And then would I do that for every single monthly interval? Thanks for any help provided
Using closing prices and dividend data, compute the monthly holding period returns for each of the three stocks. Assume the stock is purchased at the close of the market on the indicated date, and that dividends are received on the ex-dividend date.
Stock Prices
| Stock | B | N | S |
| 12/31/15 | 27.93 | 62.01 | 64.45 |
| 1/31/16 | 32.39 | 61.09 | 65.09 |
| 2/29/16 | 32.44 | 61.00 | 65.58 |
| 3/31/16 | 31.10 | 58.45 | 64.32 |
| 4/30/16 | 35.00 | 59.09 | 61.07 |
Dividend: Stock B
| 3/15/16 | .28 |
| 6/10/16 | .34 |
| 9/9/16 | .34 |
| 12/6/16 | .34 |
I just used the dividend for stock B. With whatever help I receive I can calculate HPR for the others. My main issue is that I am taking (P1 - P0)/P0. For example in stock B, I am using (35-27.93)/27.93. However, if I am calculating monthly HPR should I be doing each month and incorporating the dividend? So for the stock B would it instead look like this: (.28 + 32.39-27.93)/27.93? And then would I do that for every single monthly interval? Thanks for any help provided