The Holding-Period Return (HPR) on a Share of Stock Is

question 3

Multiple Choice

The holding-period return (HPR) on a share of stock is equal to

• A) the capital gain yield during the period plus the inflation rate.
• B) the capital gain yield during the period plus the dividend yield.
• C) the current yield plus the dividend yield.
• D) the dividend yield plus the risk premium.
• E) the change in stock price.

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Definitions:

Appraisal Rights

Legal rights that allow shareholders to demand an independent evaluation of their shares' value, typically in the context of a corporate action like a merger.

Dissenting Shareholders

Shareholders who do not agree with certain corporate actions, such as mergers or acquisitions, and may have rights to receive payment for their shares.

Dissolution

The process of formally dissolving a legal entity, such as a corporation or partnership, and ceasing its operations.

Outstanding Debts

Financial obligations or amounts owed by a person or entity that are yet to be paid.