Question

When an investor's original value is subtracted from the ending value, and then has the income received over that time period added to it which is then divided by the original cost, the result is:

A)annualized return.
B)internal rate of return.
C)expected return.
D)holding period return.

Answer 1

The holding period return is calculated by subtracting the original investment value from the ending value, adding the income received during that time period, and then dividing the result by the original cost.

Step-by-step explanation:

The correct answer is D) holding period return. The holding period return is a measure of the return on an investment over a specific time period. It is calculated by subtracting the original investment value from the ending value, adding the income received during that time period, and then dividing the result by the original cost.