Jack owned a stock for five months and earned an annualized rate of return of 6 percent. What was the holding period return?
A)2.37%
B)2.42%
C)2.46%
D)2.64%
E)2.72%

Name: Jack owned a stock for five months and earned an annualized rate of return of 6 percent. What was the holding period return? A)2.37% B)2.42% C)2.46% D)2.64% E)2.72%
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Question

Quizplus · Accepted Answer

The holding period return can be calculated by converting the annualized rate to the holding period rate for five months: (1 + 0.06)^(5/12) - 1 = 2.46%.

Jack Owned a Stock for Five Months and Earned an Annualized