CFA Practice Question

There are 266 practice questions for this study session.

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".
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