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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?

##### Solution Summary

Holding-period returns are calculated and interpreted.

##### 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 ...

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