Answer: 27.5%.

**Explanation** Holding Period Return (HPR) is calculated as: \[ HPR = \frac{(Ending\ Value + Dividends) - Beginning\ Value}{Beginning\ Value} \] Given: - Beginning Value = $60 - Ending Value = $75 - Dividend = $1.50 Calculation: \[ HPR = \frac{(75 + 1.50) - 60}{60} = \frac{76.50 - 60}{60} = \frac{16.50}{60} = 0.275 = 27.5\% \] **Key Points:** - The holding period return includes both capital appreciation and dividend income - The formula accounts for all cash flows received during the holding period - Option C (27.5%) is correct because it properly includes the $1.50 dividend in the total return calculation

Author: LeetQuiz Editorial Team