In Which of the Following Circumstances Would It Be Most

question 56

Multiple Choice

In which of the following circumstances would it be most appropriate to use the holding period return?

• A) to compare the capital gains on a house held for 8 years and a mutual fund held for 6 years
• B) to compare the calendar year performance of stocks purchased in March to stocks purchased in September
• C) to compare the dividend yield of stocks to the interest rate on bonds
• D) to compare the performance of several stocks, each of which was held throughout an entire year

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Definitions:

State Government

The government of an individual state within the United States, which operates independently in managing local affairs and responsibilities.

Supreme Court

The highest federal court in the United States, with ultimate appellate jurisdiction over all federal and state court cases that involve a point of constitutional law.

Fourteenth Amendment

An amendment to the U.S. Constitution that grants citizenship to all persons born or naturalized in the United States and ensures equal protection under the law.

Due Process Clause

A legal principle that guarantees fair treatment through the normal judicial system, especially as a citizen's entitlement.