Jason owned a stock for four months and earned an annualized rate of return of 11 percent. What was the holding period return?
A)2.37 percent
B)2.42 percent
C)2.46 percent
D)2.64 percent
E)2.72 percent

Name: Jason owned a stock for four months and earned an annualized rate of return of 11 percent. What was the holding period return? A)2.37 percent B)2.42 percent C)2.46 percent D)2.64 percent E)2.72 percent
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Question

Quizplus · Accepted Answer

Annualized return = (1 + x)^12/4 - 1 = .11; x = 1.11^1/3 - 1; x = HPR = 2.64 percent

Jason Owned a Stock for Four Months and Earned an Annualized