The holding period return (HPR) is calculated as:

A Price only

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

C Dividend Yield only

D Price change only

✓ Correct Answer: Option B

HPR = (P₁ − P₀ + D) / P₀, capturing both capital appreciation and income.

💡 Why is B) the correct answer?

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

The other options — A) Price only, C) Dividend Yield only, D) Price change only — are incorrect for this CFA Exam Prep question. As explained above: HPR = (P₁ − P₀ + D) / P₀, capturing both capital appreciation and income.

📚 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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The holding period return (HPR) is calculated as:

✓ Correct Answer: Option B

📚 About This CFA Exam Prep Practice Question

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