Question

A stock’s holding period return represents:

a. the return from a stock relative to the return from a specific portfolio.
b. the total return earned over a specific period through buying and selling an asset.
c. the total dividend return received over the time a stock is held.

Answer 1

b. the total return earned over a specific period through buying and selling an asset

Step-by-step explanation:

Holding period return(HPR) is the return an investor receives for the period he/she holds the stock. For example if an investor buys a company's stock and holds it for a year then sells it after receiving the dividend, the holding period will be 1 year, while the holding period return will be the percentage rate of return earned within that 1 year , making choice B correct.