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    Comparing Holding-Period Returns

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    a. Compute the holding-period returns for Renee and Lester for periods 2 through 4.

    Period Renee Lester
    1 $9 $27
    2 11 28
    3 10 32
    4 13 29

    b. How would you interpret the meaning of the holding-period return?

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    Solution Preview

    a. Compute the holding-period returns for Renee and Lester for periods 2 through 4.

    HPR for Renne =(13-11)/11= 18.18%
    HPR for Lester =(29-28)/28= 3.57%

    b. How would you ...

    Solution Summary

    Holding-period returns are calculated and interpreted.

    $2.19

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