If the holding period return (HPR) of an investment is 20 percent before taxes for a nine month period, an investor in the 30 percent tax bracket would have an after-tax HPR of 14 percent.

Name: If the holding period return (HPR) of an investment is 20 percent before taxes for a nine month period, an investor in the 30 percent tax bracket would have an after-tax HPR of 14 percent.
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Quizplus · Accepted Answer

The after-tax HPR is calculated by reducing the pre-tax HPR by the tax rate: 20% * (1 - 0.30) = 14%.

If the Holding Period Return (HPR) of an Investment Is