question archive Your favorite stock has yielded returns in the last five years as follows: 5%, 8%, -12%, 15%, and 21%
Your favorite stock has yielded returns in the last five years as follows: 5%, 8%, -12%, 15%, and 21%
Subject:FinancePrice:2.86 Bought3
Your favorite stock has yielded returns in the last five years as follows: 5%, 8%, -12%, 15%, and 21%. What is the percentage of the holding period return for those 5 years? Immersive Reader
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Answer:
Calculation of Holding Period Return for 5 years = [ (1+r1) * (1+r2) * (1+r3) * (1+r4) * (1+r5)] - 1
= [(1 + 5%) * (1 + 8%) * (1 - 12%) * (1 + 15%) * (1 + 21%)] - 1
= 1.3886 - 1
= 0.3886
= 38.86%
Holding Period Return = 38.86%
