The holding period return (HPR) of one's portfolio should be compared to investment goals
I. to assess whether the proper rate of return is being earned for the risk involved.
II. to be sure one's portfolio is outperforming the S&P 500 Index.
III. to isolate any problem investments.
IV. to determine when to change benchmarks from the S&P 500 to the NASDAQ Composite Index.
A) I and III only
B) II and IV only
C) I, II and III only
D) II, III and IV only

Question

Quizplus · Accepted Answer

Comparing the holding period return (HPR) of one's portfolio to investment goals is important to assess whether the proper rate of return is being earned for the risk involved (I) and to isolate any problem investments (III). It is not necessary to always compare to the S&P 500 Index (II) or change benchmarks from the S&P 500 to the NASDAQ Composite Index (IV).

The Holding Period Return (HPR) of One's Portfolio Should Be