- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Valuation
- Learning Module 21. Return Concepts
- Subject 1. Return Concepts
CFA Practice Question
Select the correct statement(s).
II. The holding period return of a stock equals dividend yield plus price appreciation return.
III. The holding period return is the return earned from investing in an asset over a year.
IV. If the market price equals intrinsic value, then the IRR is the required return calculated.
I. The holding period return cannot be negative.
II. The holding period return of a stock equals dividend yield plus price appreciation return.
III. The holding period return is the return earned from investing in an asset over a year.
IV. If the market price equals intrinsic value, then the IRR is the required return calculated.
Correct Answer: II and IV
III. It can be any specific time period.
I. If the capital loss is more than the investment income then it can be negative.
III. It can be any specific time period.
User Contributed Comments 1
| User | Comment |
|---|---|
| ashish100 | yield and price appreciation return |