On 1s January you created a portfolio by purchasing 2000 shares of Oman Fibre Optics 2 Rial each, and 2000 shares of Oman Flour Mills @ 1 Rial each. During the year Oman Flour Mills declared a cash dividend of 200 Baisa per share, while Oman Fibre did not give any dividend. After one year you sold your both the shares. Oman Fibre Optic at 1.8 Rials each and Oman Flour Mills at 1.3 Rials each. Calculate the HPY for your portfolio.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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On 1st January you created a portfolio by purchasing 2000 shares of Oman Fibre Optics
2 Rial each, and 2000 shares of Oman Flour Mills @ 1 Rial each.
During the year Oman Flour Mills declared a cash dividend of 200 Baisa per share, while
Oman Fibre did not give any dividend.
After one year you sold your both the shares. Oman Fibre Optic at 1.8 Rials each and
Oman Flour Mills at 1.3 Rials each.
Calculate the HPY for your portfolio.
Transcribed Image Text:On 1st January you created a portfolio by purchasing 2000 shares of Oman Fibre Optics 2 Rial each, and 2000 shares of Oman Flour Mills @ 1 Rial each. During the year Oman Flour Mills declared a cash dividend of 200 Baisa per share, while Oman Fibre did not give any dividend. After one year you sold your both the shares. Oman Fibre Optic at 1.8 Rials each and Oman Flour Mills at 1.3 Rials each. Calculate the HPY for your portfolio.
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Holding period Yield = (Ending Value - Beginning Value + Dividend) / Beginning value

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