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Question: calculate a oneyear holding period return for the following two...

Question details
  1. Calculate a one-year holding period return for the following two investments alternatives.

Which investment would you prefer, assuming they are of equal risk? Explain.

            Investment  

X                                 Y

Cash received

1st quarter                                                                                             $1.00                           $0.00

2nd quarter                                                                                            $1.20                           $0.00

3rd quarter                                                                                            $0.00                           $0.00

4th quarter                                                                                            $2.30                           $2.00

Investment value

Beginning of Year                                                                                $30.00                         $50.00

End of year                                                                                          $29.00                         $56.00

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