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31 May, 16:48

Of the following types of returns listed, which best defines the following equation? (Final Value - Initial Cost + Income) / Initial Cost = ?

[A] The Internal Rate of Return of an investment/project

[B] The Holding Period Rate of Return of an investment/project

[C] The Average Yearly Rate of Return of an investment/project

[D] The Average Rate of Return of an investment/project after adjustment for inflation

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  1. 31 May, 20:06
    0
    The holding period rate if return of an investment/project.

    The correct answer is B Explanation:

    The holding period rate of return of an investment/project is calculated as final value minus initial cost plus income divided by initial cost.
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