Answer: 23.44%.

**Explanation** Holding Period Return (HPR) is calculated as: \[ HPR = \frac{(Ending\ Value + Income) - Beginning\ Value}{Beginning\ Value} \] Where: - Beginning Value = Purchase price = $32 - Ending Value = Sale price = $37.50 - Income = Dividends received = $2 \[ HPR = \frac{($37.50 + $2) - $32}{$32} = \frac{$39.50 - $32}{$32} = \frac{$7.50}{$32} = 0.2344 \] \[ HPR = 23.44\% \] **Key Points:** 1. The holding period return includes both capital appreciation and income received during the holding period. 2. The time period (9 months) is irrelevant for HPR calculation since it's not annualized. 3. Option A (17.19%) would be incorrect if only considering capital appreciation: ($37.50 - $32)/$32 = 17.19%. 4. Option B (32.42%) appears to be incorrect and may result from calculation errors. **Reference:** Module 1.3, LOS 1.e

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