A holding period return is calculated by adding the current income to the capital gains and dividing this sum by the
A) average investment value.
B) beginning investment value.
C) total income received.
D) selling price of the investment.

Question

Quizplus · Accepted Answer

The holding period return is calculated by adding the current income (such as dividends or interest) to the capital gains (or losses) and then dividing this sum by the beginning investment value. This formula provides the return on an investment over the period it was held.

A Holding Period Return Is Calculated by Adding the Current