The holding period is a useful way to compare investments because it considers
A) the time value of money.
B) only capital gains, but not income.
C) both income and capital gains or losses.
D) the relative size of investments being compared.

Question

Quizplus · Accepted Answer

The holding period takes into account both income and capital gains or losses, making it a useful way to compare investments. The time value of money can also be considered, but it is not the only factor being considered. The relative size of investments being compared may also be a factor, but it is not the primary consideration when using the holding period as a comparison tool.

The Holding Period Is a Useful Way to Compare Investments