Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
London purchased a piece of real estate last year for $83,500. The real estate is now worth $104,400. If London needs to have a total return of 0.24 during the year, then what is the dollar amount of income that she needed to have to reach her objective? Round to two decimal places.
Expert Solution
Step 1
Holding period is the total period for which an investor holds the investment i.e. the period between the purchase date and the selling date of the investment. Holding period return is the net return that an investor earns for holding the investment.
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