The Holding-Period Return (HPR) for a Stock Is Equal to

question 5

Multiple Choice

The holding-period return (HPR) for a stock is equal to

• A) the real yield minus the inflation rate.
• B) the nominal yield minus the real yield.
• C) the capital gains yield minus the tax rate.
• D) the capital gains yield minus the dividend yield.
• E) the dividend yield plus the capital gains yield.

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Definitions:

Rank Order

A method of arranging items or variables according to their importance, preference, or magnitude in a sequential order.

Ordinal Measurement

A type of measurement that deals with data that can be ordered or ranked but the intervals between ranks are not consistent.

Nominal

refers to a classification or labeling of entities where the categories do not imply a specific order or ranking.

Likert-Type Scale

A psychometric scale commonly involved in research that employs questionnaires, where respondents specify their level of agreement to statements.