You purchased a share of stock for $41. One year later you received $2.70 as dividend and sold the share for $40. Your holding-period return was __________blank.

To calculate the holding-period return (HPR), you can use the formula:

\[
\text{HPR} = \frac{\text{Income} + \text{Ending Value} - \text{Initial Value}}{\text{Initial Value}}
\]

In this case:

- Initial Value = $41
- Income (dividend) = $2.70
- Ending Value (sale price) = $40

Plugging in the numbers:

\[
\text{HPR} = \frac{2.70 + 40 - 41}{41} = \frac{1.70}{41} \approx 0.0415 \text{ or } 4.15\%
\]

Thus, your holding-period return was approximately **4.15%**.

Would you like any further details or explanations? Here are some related questions you might find interesting:

1. How does the holding-period return compare to other investment metrics?
2. What factors can influence stock prices after purchasing?
3. How can dividends impact overall investment returns?
4. What are the risks associated with investing in stocks?
5. How do you calculate the annualized return from a holding-period return? 

**Tip:** Always consider both capital gains and dividends when calculating total returns on stock investments.

Discover how to calculate the holding-period return for a stock investment. In this example, a stock purchased for $41, with a $2.70 dividend and sold for $40, yields an approximate return of 4.15%. Ideal for high school finance students.

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