n NISM Certifications
XV NISM Series XV
Medium

TRUE statement regarding Holding Period Return (HPR) of securities:

Practice question from NISM XV Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    HPR is more accurate than CAGR

  2. B

    HPR considers time value of money

  3. C

    HPR is effective over holding period

  4. HPR is not very effective as it does not annualize return

    Correct answer

Why this is the answer

HPR measures total return over the holding period but does not account for annualization, limiting comparability.

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