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Calculate a one-year holding period retum (HPR) for the following two investment alternatives: Which investment would you prefer, assuming they are of equal risk? Explain.

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Calculate a one-year holding period retum (HPR) for the following two investment alternatives: Which investment would you prefer, assuming they are of equal risk? Explain. The HPR for investment X is %. (Enter as a percentage and round to two decimal places.) The HPR for investment Y is 1%. (Enter as a percentage and round to two decimal places.) Which, if any, of the retum components is likely not to be realized if you continue to hold each of the investments beyond 1 year? (Choose the best answer below.) O A. If the investments are held beyond 1 year, the current income component would not be realized and would likely change OB. If the investments are held beyond 1 year, the capital gain (loss) component would not be realized and would likely change, OC. If the investments are held beyond 1 year, only the current income on Investment Y would not be realized the current income on Investment X would be realized because these cash flows occur earlier in the investment period. OD. If the investments are held beyond 1 year, only the capital loss on Investment X would not be realized; the capital gain on Investment Y would be realized, Which investment would you prefer, assuming they are of equal risk? (Choose the best answer below) O A Investment X would be preferred since it offers the larger capital gain (los) OB. Investment X would be preferred since it offers more Intra year cash flows (5138, $0.36, and $6.88 for X versus $1.08 for Y) OC. Investment X would be preferred since it offers the higher holding period return OD. Investment Y would be preferred since it offers a capital gain, while investment X would not be preferred due to the capital loss i Data Table - X componen Choose the best are held be are held be are held be these cash he on Investment X are held be Investment Y Cash received 1st quarter $1.38 $1.98 2nd quarter $0.36 $1.98 3rd quarter $0.59 $1.98 4th quarter $5.88 $1.98 Investment value Beginning of year $39.42 $47.57 End of year $46.68 $51.75 (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) hvestment Y would you prefer, uld be prefer uld be prefel uld be prefer uld be prefer Print Done Joss

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