- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 1. Rates and Returns
- Subject 2. Rates of Return
CFA Practice Question
1,000 shares of XYZ were purchased for $30,000. After 5 years, the shares were sold for $50,000 (no dividends). This investment has ______.
A. HPR = 166.7%
B. HPR = 66.67%
C. HPR = 13.33%
Explanation: HPR is the factor by which the initial investment has increased.
User Contributed Comments 3
| User | Comment |
|---|---|
| azramirza | Holding period return: (50000 - 30000)/30000 = 66.67%. C is the annualized return but the question is asking the total holding period return! |
| maria15 | Thanks azramirza |
| davideme20 | Holding Period Return is defined as "the percentage change in the value of an investment". |