CFAI Mock AM Q 22. Holding Period Return.
My understanding of HPR is that it is the rate of return earned on an investment irrespective of the duration of holding period whether it is few years or few months.
But in the solution to this question it says “The HPR is not annualized for holding periods shorter than a year.” So do we have to annualize the HPR if the holding period is more than a year? |