Answer: $402.

The correct answer is **A ($402)**. The holding period return (HPR) is calculated as the total return from holding an asset over a single period, including both price appreciation and income (e.g., dividends). The formula for HPR is: \[ R = \frac{(P_1 - P_0) + I}{P_0} \] Where: - \( P_0 \) is the initial price ($450), - \( P_1 \) is the sale price, - \( I \) is the income received ($2). Given a loss of 10.2%, we rearrange the formula to solve for \( P_1 \): \[ P_1 = R \times P_0 + P_0 - I \] \[ P_1 = (-10.2\%) \times 450 + 450 - 2 = 402.1 \approx 402 \] **Option B ($404)** is incorrect because it ignores the dividend impact, leading to an HPR of -9.8%. **Option C ($406)** is incorrect as it adds the dividend instead of subtracting it, resulting in an HPR of -9.3%.

Author: LeetQuiz Editorial Team