If Holding Period return are 20% & period is 2 years then Annualized returns ____.

Name: If Holding Period return are 20% & period is 2 years then Annualized returns ____.
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Quizplus · Accepted Answer

The annualized return can be calculated using the formula: (1 + HPR)^(1/n) - 1, where HPR is the holding period return and n is the number of years. For a 20% HPR over 2 years, the annualized return is (1 + 0.20)^(1/2) - 1 = 0.0954 or approximately 10%.

If Holding Period Return Are 20% & Period Is 2