You put up $50 at the beginning of the year for an investment.The value of the investment grows 4% and you earn a dividend of $3.50.Your HPR was ____.
A) 4.00%
B) 3.50%
C) 7.00%
D) 11.00%

Question

Quizplus · Accepted Answer

The Holding Period Return (HPR) is calculated as the total return received from holding an investment over a period of time, usually expressed as a percentage. It includes both capital gains and dividends. The capital gain is 4% of $50, which is $2.00. Adding the dividend of $3.50 gives a total return of $5.50. The HPR is ($5.50 / $50) * 100% = 11.00%.

You Put Up $50 at the Beginning of the Year