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QUESTION 1 The use of the holding period rate of retum (HPR) as a measure of investment performance allows one to compare the performance of

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QUESTION 1 The use of the holding period rate of retum (HPR) as a measure of investment performance allows one to compare the performance of two investments whose holding periods are of different length True False QUESTION 2 All else equal, your wealth will grow faster if the interest rate is 10% and compounding is O a Continuous O b. Daily O c. Monthly Od. Weekly QUESTION 3 Let the stock price be $60(21 t=0). 580(at t=1). 590(at t=2). 560(at 3). The average rate of retum is a 0% b.7.35% O C.4.17% O d. 2.21% QUESTION 4 Consider a stock purchased on January 1st, 1959, for $65 and sold on January 15, 1960, for $90. The stock collected a dividend payment of SS over that year. In addition, the price of the stock on March 4th Was $105. What was the holding period rate of return over that year? O a 30.77% 6.56.28% OC-25% Od. 69.23% QUESTION 5 The IRR (Intemal Rate of Return) takes time value of morey into account True O False

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