Answer: 14%.

The holding period return (HPR) is calculated as the total return from an investment over the holding period, including both capital gains and income (such as dividends). The formula for HPR is: \[ R = \frac{(P_1 - P_0 + D)}{P_0} \] Where: - \( P_1 \) is the selling price ($107), - \( P_0 \) is the purchase price ($100), - \( D \) is the dividend received ($7). Substituting the values: \[ R = \frac{(107 - 100 + 7)}{100} = \frac{14}{100} = 14\% \] Option C is correct because it accurately includes both the capital gain and the dividend in the calculation. Options A and B are incorrect due to errors in either omitting the dividend or incorrectly subtracting it.

Author: LeetQuiz Editorial Team