The holding-period return (HPR) for a stock is equal to
A) the real yield minus the inflation rate.
B) the nominal yield minus the real yield.
C) the capital gains yield minus the tax rate.
D) the capital gains yield minus the dividend yield.
E) the dividend yield plus the capital gains yield.

Question

Quizplus · Accepted Answer

The holding-period return (HPR) for a stock is calculated by adding the dividend yield to the capital gains yield. This provides a comprehensive measure of the stock's performance over a specific period, including both income (dividends) and appreciation (capital gains).

The Holding-Period Return (HPR) for a Stock Is Equal to