Question

When she turned 21, Reese purchased 125 shares of Stock A for $35 per share; 72 shares of Stock B for $18 per share; 56 shares of Stock C for $43 per share; and 105 shares of Stock D for $26 per share. At age 30, Reese sold Stock A for $4804 with annual dividends of $75 per year, Stock B for $1456, Stock C for $2384, and Stock D for $3475. Which stock provided Reese with the greatest return on her investment?

Answer 1

Holding period return of eaach stock is
Stock A - +2.53%
Stock B- +1.3%
Stock C- -0.11%
Stock D- +2.72%
Hence Stock D provided Reese highest return on investment.