Question

The holding period return (HPR): Question 35 options: a) reflects only capital gains and losses for investment periods of one year or less. b) calculates the annual dividend yield on stocks or current interest yield on bonds. c) is the most appropriate measure of returns for an investment period exceeding one year. d) can be used to determine the actual total return on stocks, bonds, and other investments for periods of one year or less.

Answer 1

d) can be used to determine the actual total return on stocks, bonds, and other investments for periods of one year or less.

Step-by-step explanation:

Retention period return is a term used in economics and finance that refers to the total return (including gains, losses) of any type of investment made over a period of time. This time period can be estimated at one year or less. The retention period return shows the investor whether the investment is making a profit or loss over a given period of time. In other words, we can conclude that this term can be used to determine the actual total return on stocks, bonds and other investments for periods of one year or less.