Comparing Holding-Period Returns

a. Compute the holding-period returns for Renee and Lester for periods 2 through 4.

Period Renee Lester
1 $9 $27
2 11 28
3 10 32
4 13 29

b. How would you interpret the meaning of the holding-period return?

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...erpret the meaning of the holding period return?

HPR is the total return earned on an asset over the period during which it was held. In this case, we are assuming that Renee ...