Respuesta :
12.5% annualized return over the holding period.
How is annual holding period return calculated?
Use the annualized holding period return formula to convert this to annualized form: The annualized HPR is equal to ((HPR + 1) 1/t) - 1.
What does a return on holding period mean?
The total return on an investment during its holding period is known as the holding period return (or yield). An investor's holding period, or the time between purchasing and selling a security, is called a holding period.
How does annualizing returns work?
The geometric average amount of money an investment earns each year over a given time period is known as an annualized total return. The annualized return formula shows what an investor would earn over time if the annual return were compounded. It is calculated as a geometric average.
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