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

develop simulation model-compute average amount, Bob Smith recently comple...

Bob Smith recently completed his MBA and accepted a job with a computer company. To ensure that his retirement is comfortable, he intends to invest $3,000 of his salary into a tax

What are the decision variables, Question 1 Water resources in many pa...

Question 1 Water resources in many parts of Australia are being closely watched and restrictions have been imposed on activities such as garden watering. Suppose that SA Water

What is cre, in Balance Sheet

in Balance Sheet

Exploratory analysis of the data, The Home Improvement Company (HIC) operat...

The Home Improvement Company (HIC) operates five stores in a large regional area. The company wished to study the relationship between x, house value ($'000) and Y, yearly expendit

Job order costing, Bedovin company manufactures office tables and chairs us...

Bedovin company manufactures office tables and chairs using job order costing. The data given below were taken from the records as of April 30, the first month of operations. Job

Study guide, I have a midterm coming up the teacher is allowing us to have ...

I have a midterm coming up the teacher is allowing us to have a front & back cheats on anything we want on it. Is there a way you guys can make me one?

Cost accounting, difference between financial statement and annual report ....

difference between financial statement and annual report .

Kurtosis, how solve and get kurtosis

how solve and get kurtosis

Job costing order, Diketahui: Biaya Bahan Baku 15.500 Biaya Tenaga Kerja La...

Diketahui: Biaya Bahan Baku 15.500 Biaya Tenaga Kerja Langsung:14.750 Biaya Overhead pabrik 11.800 Barang Jadi 37500 Bahan baku yang deibebankan ke satu pesanan yang masih dalam

Homogeneity, Let f (?) be the production function associated with a single-...

Let f (?) be the production function associated with a single-output technology, and let Y be the production set. Show that Y satisfies constant returns to scale if and only if f (

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