Loading…
HKSI PrepStudyingPaper 1
Switch exam
Ms Chan bought a share at HK$40.00, received a dividend of HK$1.20 while she held it, and sold it 9 months later at HK$43.00. What was her holding period return?
Holding period return = (selling price − buying price + income) ÷ buying price = (43.00 − 40.00 + 1.20) ÷ 40.00 = 4.20 ÷ 40.00 = 10.50%. The holding period return covers the whole period held, however long, so it is not annualised; annualising the 9-month figure, (1.105)^(12/9) − 1 = 14.24%, gives a different measure from the one asked for. Leaving out the dividend gives 3.00 ÷ 40.00 = 7.50%. Dividing by the selling price instead of the price paid gives 4.20 ÷ 43.00 = 9.77%. Source: Standard investment mathematics: holding period return (as at October 2026).
Leaving out the dividend, dividing by the ending price, or annualising a return the question asks for over the holding period.
Practise more Paper 12 Basic theoretical aspects of portfolio management questions
Exam-style questions with worked answers, then full timed mocks. Free to start.
Build a daily practice habit — a few exam-style questions a day, with worked answers. Free to start.
Start practising →Original study material mapped to the public HKSI Paper 12 syllabus. Unofficial, not endorsed by HKSI Institute or the SFC. Verify figures and rules against current guidance before relying on them.