Options
- A
25 months
- B
48 days
- C
40 months
-
4 Years
Correct answer
Why this is the answer
The formula for Average Holding Period is: \[ \text{Average Holding Period} = \frac{12 \text{ months}}{\text{Portfolio Turnover Ratio}} \] With a portfolio turnover ratio of 25% (or 0.25), the average holding period would be: \[ \frac{12}{0.25} = 48 \text{ months} = 4 \text{ years} \]
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