The holding period return is not useful for comparing investments with unequal holding periods.

Name: The holding period return is not useful for comparing investments with unequal holding periods.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The holding period return (HPR) measures the return of an investment over a specific period, making it less effective for comparing investments with different holding periods since it does not account for the time value of money or annualize the returns.

The Holding Period Return Is Not Useful for Comparing Investments