1. Suppose you hold a particular investment for 7 months. You calculate that your holding period
return is 6.4 percent. What is your annualized return? (Do not round intermediate calculations.
Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your
response.)
Solution
Annualized return = [(1 + HPR)12/7 - 1] * 100%
= [(1 + 6.4%)12/7 - 1] * 100%
= 11.22%