-Refer to Portfolio.What was the two-year holding period return for the portfolio? Assume any dividend payments are included in the market value shown above.

Question

Quizplus · Accepted Answer

The two-year holding period return is calculated as the difference between the ending market value and the beginning market value, divided by the beginning market value. In this case, the ending market value is $1,385,000 and the beginning market value is $1,000,000. Therefore, the two-year holding period return is (1,385,000 - 1,000,000) / 1,000,000 = 38.5%.