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These are the four questions, with the table for these numbers The HPR for investment X is o. (Enter as a percentage and round to
These are the four questions, with the table for these numbers
The HPR for investment X is o. (Enter as a percentage and round to two decimal places.) The HPR for investment Y is \%. (Enter as a percentage and round to two decimal places.) Which, if any, of the return components is likely not to be realized if you continue to hold each of the investments beyond 1 year? (Choose the best answer below.) A. If the investments are held beyond 1 year, the capital gain (loss) component would not be realized and would likely change. B. If the investments are held beyond 1 year, the current income component would not be realized and would likely change. C. 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. earlier in the investment period. Which investment would you prefer, assuming they are of equal risk? (Choose the best answer below.) A. Investment X would be preferred since it offers the larger capital gain (loss). B. Investment X would be preferred since it offers more intra-year cash flows ($1.49,$0.51, and $5.28 for X versus $1.95 for Y ). C. Investment Y would be preferred since it offers a capital gain, while investment X would not be preferred due to the capital loss. 'D. Investment X would be preferred since it offers the higher holding period return. data table below in order to copy its contents into a spreadsheet.)Step by Step Solution
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