# Holding Period Return [closed]

Bought stock for $$12.00$$/share. Sold 3 years later at $$20$$/share. Paid $$1$$ dividend each year for 3 years. Stock's value at the end of the first year was $$18$$ and $$15$$ at the end of the second. Find the holding period of return.

In this example, the work provided is below:

r1= 58.33% r2=-11.11% r3=40%

so HPR=(1.5833*.8889*1.40)-1 = 97.04%

I understand how to find the HPR, but am unsure how r1, r2 and r3 were obtained. I understand this is probably a bit trivial but I am new to this stuff so any help would be great, thanks!

## closed as off-topic by Bob Jansen♦Mar 24 at 20:02

This question appears to be off-topic. The users who voted to close gave this specific reason:

• "Basic financial questions are off-topic as they are assumed to be common knowledge for those studying or working in the field of quantitative finance." – Bob Jansen
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Time  T0      T1        T2         T3