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Basic Question 8 of 12
Which return measure reflects a buy-and-hold strategy?
B. Geometric mean
C. Holding period return
A. Arithmetic mean
B. Geometric mean
C. Holding period return
User Contributed Comments 4
| User | Comment |
|---|---|
| czar | please could someone help explain this one |
| Jamberto | didnt really get what they are asking... explanation would help |
| johntan1979 | The keywords are given in the explanation: investment amount not reset at the beginning of the year. Because of the compounding effect, you will want to make use of the buy-and-hold strategy. |
| khalifa92 | Holding period return: buy hold sell then find return Geometric: multiplies returns which implies haven't been sold yet |
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Tamara Schultz
Learning Outcome Statements
calculate and interpret different approaches to return measurement over time and describe their appropriate uses;
CFA® 2024 Level I Curriculum, Volume 1, Module 1.