One Reason That the Holding Period Return Should Not Be

question 22

True/False

One reason that the holding period return should not be used to compare long-term investments is that it does not consider the time value of money.

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Definitions:

Expectancy Model

A theory that suggests motivation is based on the expectation of desired outcomes and the value placed on those outcomes.

Motivated

Refers to being driven or encouraged to act or accomplish something due to either internal desires or external rewards.

Achieve

To successfully reach a desired or intended goal, often as a result of effort or skill.

Teams Competency

The combined skills, knowledge, and abilities of a team that enable it to perform effectively and achieve its goals.