Holding period return, statistics, Basic Statistics

Holding period return:
Holding period return is the return earned by the virtue of holding an asset over a given period. The return is equal to the income and other gains earned from the asset, divided by the original cost of the asset.

Holding period return of SMSI is -3.12 which represents the loss on investment. Investment is reduced by 3.12% over the period. Where as in the case of S&P Holding period return is 0.62, meaning that investments are increased by 0.62% over the period.
Even though the adjusted Holding period return for SMSI is reduced due to dollar appreciation, still it continues to be negative, resulting in the reduction in investment.
Therefore after studying Holding period return and adjusted Holding period return it is clear that investment in SMSI is not advisable as it results in deterioration of capital. Whereas, the investment is advisable since it gives positive Holding period return. But again here it should be noted that 0 .62% of Holding period return for period of 10 weeks means 3.224% (52 weeks) of annual growth which is matter of consideration seeing the risk return ratio.
Posted Date: 2/7/2012 2:13:37 AM | Location : United States

Related Discussions:- Holding period return, statistics, Assignment Help, Ask Question on Holding period return, statistics, Get Answer, Expert's Help, Holding period return, statistics Discussions

Write discussion on Holding period return, statistics
Your posts are moderated
Related Questions
CBT has agreed to finance the needs of a stereo wholesaler for the next month. To complete the loan agreement, the wholesaler must estimate the cash on hand during the first 90 day

The initial research proposal will consist of the following SIX (6) items: 1. Identify a business research topic 2. Define the research questions for the identified problem or opp

At the end of their first year of teaching, 11 teachers were jointly ranked by two school administrators to reflect their relative degree of teaching competence. Unknown to the adm

The study of radioactive disintegrations indicates the emission of alpha, beta and gamma particles/rays to be of nuclear origin. Further, study of artificial radioactivity has reve

Problem 1 Statistics plays a vital role in almost every facet of human life. Statistics. Explain the applications of statistics in business and management. Defining Stati

Toyota Motors introduced a hybrid car Hybrid G in the U.S. market in 2006. In the first three years, the sales of Hybrid G were strong due to the buzz surrounding the hybrid car co

difference between histogram and historigram

Mention the characteristics of Statistics. Explain any two applications of Statistics.

The next step is to determine the sources of data to be used. The researcher has to decide whether he has to collect primary data ror depend exclusively on secondary data. Sometime

What is cut-off date A chosen manually date whereby transactions usually are stopped to give for closing of the books of accounts for a known period: for audit purposes,