Question

The one period rate of return from a stock or bond which may or may not be realized can be described by using the term:

A. holding period return

B. yeild

C. random variable D. market return





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Answer 1

Answer:

holding period return

Answer 2

Answer:

The correct option is (A) Holding Period Return.

Explanation:

Holding period return - The overall return on an asset or investment portfolio over the time that the asset or portfolio has been held is known as the holding period return (HPR). If the asset or portfolio has been held, the holding period return can be achieved. However, if an investor just plans to buy the asset, the return can only be expected.

It may be shown as,

Investment Appreciation + Investment Income = Holding Period Return

Generally, it is expressed in percentages and annualized to determine the rate of return per year

Hence , we can conclude that The one period rate of return from a stock or bond which may or may not be realized can be described by using the term is holding period return.

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