Holding period return is calculated as:

A Ending value / beginning value

B (Ending value − Beginning value + Income) / Beginning value

C Dividend / price

D Price change only

✓ Correct Answer: Option B

HPR = (P1 − P0 + D) / P0. Includes both capital appreciation and income over the period.

💡 Why is B) the correct answer?

The correct answer to the question "Holding period return is calculated as:" is Option B: (Ending value − Beginning value + Income) / Beginning value.

The other options — A) Ending value / beginning value, C) Dividend / price, D) Price change only — are incorrect for this CFA Exam Prep question. As explained above: HPR = (P1 − P0 + D) / P0. Includes both capital appreciation and income over the period.

📚 About This CFA Exam Prep Practice Question

This 1-level CFA Exam Prep question from the Quantitative Methods topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free CFA Exam Prep practice test or use flashcards for spaced repetition review.

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Holding period return is calculated as:

✓ Correct Answer: Option B

📚 About This CFA Exam Prep Practice Question

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