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

Marginal and absorption Costing Problem solving, can you provide me the pro...

can you provide me the problem with the solution base above?

Track Software, Seven years ago, after 15 years in public accounting, Stanl...

Seven years ago, after 15 years in public accounting, Stanley Booker, CPA, resigned his posiition as Manager of Cost Systems for Davis, Cohen, and O''''Brien Public Accountants and

Expected Value Problems, Ask question #Minimum 1when all factors are taken ...

Ask question #Minimum 1when all factors are taken into account, an insurance company estimates that the probability of my father making a claim for damages to his pontoon boat for

Schedules, what are the characteristics of schedules

what are the characteristics of schedules

DATA MINING, please break this problem down to laymen term so that I unders...

please break this problem down to laymen term so that I understand how you arrived at the answer. 1. AllElectronics caries 1000 products, P1, … P1000. Consider customers Ada, Bob,

How this works, So I can send you a word problem & you van send the answers...

So I can send you a word problem & you van send the answers back in excel for me?

T accounts, if my income for the rest of the month was 2,500 and i recieved...

if my income for the rest of the month was 2,500 and i recieved 1,200 in cash balance on account where would i put this

Calculate the unit of omputer peripheral device, Northern Hi-Tec Electronic...

Northern Hi-Tec Electronics Limited manufactures six computer peripheral devices: internal modems , external modems , circuit boards , CD drives , hard disk drives , and memo

Write Your Message!

Captcha
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!

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