Holding period return, statistics, Basic Statistics

Holding period return, statistics, Basic Statistics

Assignment Help:

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.

Related Discussions:- Holding period return, statistics

Galvanometer to voltameter, a millemeter ammeter of resistance 5m amp is to...

a millemeter ammeter of resistance 5m amp is to be used to measure a potential difference of 50volt.calculate the multiplier resistance

Simple random sample, A simple random sample of n = 300 full-time workers i...

A simple random sample of n = 300 full-time workers is selected from a company list containing the names of all n = 5000 full-time workers in order to evaluate job satisfaction. Gi

Angular histogram, Angular Histogram A method or technique for displayin...

Angular Histogram A method or technique for displaying the circular data, which involves the wrapping of the usual histogram around a circle. Each bar in the histogram is center

Frequency, frequency distribution

frequency distribution

Internal rates of return , A consumer product firm finds that its brand of ...

A consumer product firm finds that its brand of laundry detergent is losing market share, so it decides that it needs to "freshen" the product. One strategy is to maintain the curr

Hypothesis and statistical test, College administrators across the country...

College administrators across the country have become very concerned after noticing an increase in the number of deaths in college students from binge drinking. Several psychologi

How to stretch or shrink a graph, Q. How to stretch or shrink a graph? ...

Q. How to stretch or shrink a graph? Ans. If you have the equation of a graph, you can stretch or shrink the graph, in either the x or the y direction, just by multiplying

Normal distribution, Lifts usually have signs indicating their maximum capa...

Lifts usually have signs indicating their maximum capacity. Consider a sign in a lift that reads “maximum capacity 1400kg or 20 persons”. Suppose that the weights of lift-users are

Define Manufacturing Overhead Costs, In the financial statements, each prod...

In the financial statements, each product must include the costs of the given below: Direct labor Direct material Manufacturing or factory overhead The costs that would typically b

Estimate the probability , The Video Club Martin rents movies at "regular p...

The Video Club Martin rents movies at "regular price" andat "half price". Usually if the films are regularly priced one day, they will be at regular price the next day with probab

Write Your Message!

Name

Email id

Message

Verfication Code

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd