Answer: 13.33%

The holding period return is calculated as the total return from both price appreciation and dividends received during the holding period. **Calculation:** - Purchase price (P₀) = $12 per share - Ending price (Pₜ) = $13 per share - Dividend received (Divₜ) = $0.60 per share **Formula:** $$ \text{Holding Period Return} = \frac{P_t - P_0 + \text{Div}_t}{P_0} $$ **Substituting values:** $$ \text{Holding Period Return} = \frac{13 - 12 + 0.60}{12} = \frac{1.60}{12} = 0.1333 = 13.33\% $$ **Key points:** 1. The holding period is from January 2 to June 30 (approximately 6 months) 2. Only one quarterly dividend was received on April 1 during this period 3. The return includes both the $1 price appreciation and the $0.60 dividend **Why other options are incorrect:** - **8.33%**: This would be the return if only price appreciation was considered ($1/$12 = 8.33%) - **18.33%**: This would result from incorrectly including the dividend twice or using incorrect timing of dividends The correct answer is **13.33%** as it properly accounts for both the capital gain and the dividend income received during the holding period.

Author: LeetQuiz Editorial Team