The Holding Period Is a Useful Way to Compare Investments

question 99

Multiple Choice

The holding period is a useful way to compare investments because it considers

• A) the time value of money.
• B) only capital gains, but not income.
• C) both income and capital gains or losses.
• D) the relative size of investments being compared.

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Definitions:

Fertilizer

A substance added to soil to enhance its fertility by supplying essential nutrients to plants.

Bushels

A unit of volume commonly used in agriculture, particularly in the United States, for measuring quantities of grain, fruits, and other dry commodities.

Price

The amount of currency needed to buy a good or service.

Profit

The financial gain realized when the amount of revenue earned from business activities exceeds the expenses, costs, and taxes needed to sustain the operation.