In which condition, the holding-period return rate would be lower than its annualized return rate? Please...
In which condition, the holding-period return rate would be lower than its annualized return rate? Please explain it, maybe take an example is the best. Many thanks!!
(A) HPR is negative, and the holding period is less than one year
(B) HPR is positive, and the holding period is equal to one year
(C) HPR is positive, and the holding period is less than one year
(D) HPR is positive, and the holding period is more than one year
Homework Answers
The answer is
C. HPR is positive and the holding period is less than one year
When holding period is less than one year, annualized return is calculated by extrapolating the holding period return and hence is greater than HPR
When Holding period is equal to one year, holding period return and annualized return will be same
When holding period is more than one year, annualized return will be less than holding period return
When HPR is negative, annualized return will be larger number in negative and hence, lower than HPR
For example, If 6 months return in 6%, then annualized return will be 6%*2 =12% I.e. greater than holding period return
Add Answer to:
In which condition, the holding-period return rate would be
lower than its annualized return rate? Please...
Also calculate the holding period return (HPR) and calculate the annualized rate or return if the...
Also calculate the holding period return (HPR)
and calculate the annualized rate or return if the investment
was held for 290 days
QUESTIONS 1 points Save Answer For this and the next 3 questions. Colin Starting bought 50.000 shares of Zord stock for $0 porshe Three months 91 day at the sets 20,000 shares of his stock for $85 per share. There were no dividend payments during the holding period. What is the total value of his investment AT THE...
Please show work, thanks! Determine the annual holding period rate of return on a 10-year, $30,000...
Please show work, thanks!
Determine the annual holding period rate of return on a 10-year, $30,000 discount bond that you originally purchased for $13,200 and sold 7 years later for $22,500 TT T Arial 3 (12pt) T-5 - E MS @ 3's Path:p Words:0
QUE// Calculate a one-year holding period return for the following two investments alternatives. Which investment would...
QUE// Calculate a one-year holding period return for the following two investments alternatives. Which investment would you prefer, assuming they are of equal risk? Explain. Investment X Y Cash received 1st quarter $1.00 $0.00 2nd quarter $1.20 $0.00 3rd quarter $0.00 $0.00 4th quarter $2.30 $2.00 Investment value Beginning of Year $30.00 $50.00 End of year $29.00 $56.00
Calculate a one-year holding period return for the following two investments alternatives. Which investment would you...
Calculate a one-year holding period return for the following two investments alternatives. Which investment would you prefer, assuming they are of equal risk? Explain. Investment X Y Cash received 1st quarter $1.00 $0.00 2nd quarter $1.20 $0.00 3rd quarter $0.00 $0.00 4th quarter $2.30 $2.00 Investment value Beginning of Year $30.00 $50.00 End of year $29.00 $56.00
Plastic Pretzels stock recently paid a dividend of $1.19 per share. The dividend growth rate is...
Plastic Pretzels stock recently paid a dividend of $1.19 per share. The dividend growth rate is expected to be 4.80% indefinitely. Stockholders require a return of 10.40% on this stock. a. What is the current intrinsic value of Plastic Pretzels stock? (Round your answer to 2 decimal places.) Intrinsic value b. What would you expect the price of this stock to be in one year if its current price is equal to its intrinsic value? (Round your answer to 4...
please help me this Use the information in the table below to answer questions 11 to...
please help me this
Use the information in the table below to answer questions 11 to 14 Answer A or BOA B. Put your answers in the column to the right Callable Bond Coupon Rate SX Call Price $1005 $1000 11. 12. 13. 14. Which bond is more likely to be called? Which bond has the lower current price? If yields remain constant, which bond's price will fall over the next year? Which bond is likely to have the higher...
1, What is the present value of an annual $718 perpetuity if the interest rate is...
1, What is the present value of an annual $718 perpetuity if the interest rate is 3.48% compounded annually? Please round your answer to the second decimal without dollar sign. E.g. 1.11 2, You purchased a stock at $79 and sold the stock for $86 one year after. Just before you sold the stock, you received the dividend payment of $2.37 for the share you held from the company. What is your holding period return? Please round your answer to...
Problem 2 Acidosis, a condition in which serum pH is lower than normal occurs in patients...
Problem 2 Acidosis, a condition in which serum pH is lower than normal occurs in patients with renal failure, with serum pH falling below 7.35. Contrarily severe vomiting and dehydration can cause alkalosis, a) Plot the curves of hemoglobin oxygen saturation for patients in conditions of acidosis and b) In alkalosis is oxygen released more or less efficiently to the tissues? What is the effect of c) The response to mild acidosis (between pH 7.15 and 7.35) is a complex...
18. Which of the following is NOT true about the internal rate of return: A) A...
18. Which of the following is NOT true about the internal rate of return: A) A good project is one with IRR greater than the required return. B) IRR is the discount rate that results in a zero net present value for the project. C) Crossover rate for two projects is the IRR of the project with the difference of the cash flows of the two projects.. D) For two projects of the same size, IRR will usually choose the...
Which of the following statements is true? Equity is more costly to raise than debt because...
Which of the following statements is true? Equity is more costly to raise than debt because IPOs take a long time to organize Debt is more costly to raise than equity because it is riskier, thereby requiring higher returns Equity is more costly to raise than debt because it is riskier, thereby requiring higher returns Debt is more costly to raise than equity because the bond market is illiquid What is the goal of the Firm? To maximize shareholder value...
Also calculate the holding period return (HPR)
and calculate the annualized rate or return if the investment
was held for 290 days
QUESTIONS 1 points Save Answer For this and the next 3 questions. Colin Starting bought 50.000 shares of Zord stock for $0 porshe Three months 91 day at the sets 20,000 shares of his stock for $85 per share. There were no dividend payments during the holding period. What is the total value of his investment AT THE...
Please show work, thanks!
Determine the annual holding period rate of return on a 10-year, $30,000 discount bond that you originally purchased for $13,200 and sold 7 years later for $22,500 TT T Arial 3 (12pt) T-5 - E MS @ 3's Path:p Words:0
Plastic Pretzels stock recently paid a dividend of $1.19 per share. The dividend growth rate is expected to be 4.80% indefinitely. Stockholders require a return of 10.40% on this stock. a. What is the current intrinsic value of Plastic Pretzels stock? (Round your answer to 2 decimal places.) Intrinsic value b. What would you expect the price of this stock to be in one year if its current price is equal to its intrinsic value? (Round your answer to 4...
please help me this
Use the information in the table below to answer questions 11 to 14 Answer A or BOA B. Put your answers in the column to the right Callable Bond Coupon Rate SX Call Price $1005 $1000 11. 12. 13. 14. Which bond is more likely to be called? Which bond has the lower current price? If yields remain constant, which bond's price will fall over the next year? Which bond is likely to have the higher...
Problem 2 Acidosis, a condition in which serum pH is lower than normal occurs in patients with renal failure, with serum pH falling below 7.35. Contrarily severe vomiting and dehydration can cause alkalosis, a) Plot the curves of hemoglobin oxygen saturation for patients in conditions of acidosis and b) In alkalosis is oxygen released more or less efficiently to the tissues? What is the effect of c) The response to mild acidosis (between pH 7.15 and 7.35) is a complex...
18. Which of the following is NOT true about the internal rate of return: A) A good project is one with IRR greater than the required return. B) IRR is the discount rate that results in a zero net present value for the project. C) Crossover rate for two projects is the IRR of the project with the difference of the cash flows of the two projects.. D) For two projects of the same size, IRR will usually choose the...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago