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AAFM GLO_CWM_LVL_1 Exam - Topic 9 Question 61 Discussion

Actual exam question for AAFM's GLO_CWM_LVL_1 exam

Question #: 61
Topic #: 9

[All GLO_CWM_LVL_1 Questions]

The holding period return on a stock is equal to __________.

AThe capital gain yield over the period plus the inflation rate

BThe capital gain yield over the period plus the dividend yield

CThe current yield plus the dividend yield

DThe dividend yield plus the risk premium

Show Suggested Answer

Suggested Answer: A

by Roosevelt at Apr 25, 2023, 08:32 PM

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Tina

9 months ago

I thought it included the inflation rate too, but I guess not?

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James

9 months ago

Just to clarify, the holding period return is crucial for investors.

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Art

9 months ago

Wait, are we sure about that? Seems too simple.

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Val

9 months ago

I agree, B is the right answer!

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Yen

9 months ago

It's definitely the capital gain yield plus the dividend yield!

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Anika

10 months ago

I’m a bit confused; I thought the holding period return was more about total returns, not just yields. Could it be A?

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Izetta

10 months ago

I practiced a question like this where the holding period return was definitely tied to dividends. I feel like B is the right answer.

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Magnolia

10 months ago

I remember something about yields, but I'm not entirely sure if it's just the capital gain yield or if dividends are included too.

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Juan

10 months ago

I think the holding period return is related to the capital gains and dividends, so maybe it's B?

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Elliott

10 months ago

I'm pretty confident about this one. The MoV processes definitely change as a project evolves, so I think the answer is B.

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Lina

10 months ago

This looks like a straightforward PRINCE2 question. I'm pretty confident I can figure this out.

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Gearldine

1 year ago

Easy peasy, the holding period return is just the sum of the capital gain and the dividend yield. No need to overcomplicate it.

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Jeanice

1 year ago

I got this! The holding period return is the total return on the stock, including both the capital gain and the dividends received. B is the way to go.

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Hubert

1 year ago

Haha, the answer is definitely not D. The risk premium has nothing to do with the holding period return. Someone's trying to trick us here!

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Jerilyn

1 year ago

I think it's B. Capital gain yield and dividend yield make more sense for holding period return.

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Rebbecca

1 year ago

Yeah, D doesn't make sense at all. It's definitely not the risk premium.

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Lemuel

1 year ago

C) The current yield plus the dividend yield

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Rolande

1 year ago

B) The capital gain yield over the period plus the dividend yield

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Luisa

1 year ago

A) The capital gain yield over the period plus the inflation rate

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Adelina

1 year ago

Wait, isn't the dividend yield already included in the capital gain yield? I'm a bit confused on that one.

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Lucina

1 year ago

Hmm, this looks like a classic finance question. I think B is the correct answer - the holding period return is the capital gain yield plus the dividend yield.

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Diane

1 year ago

I'm not sure, but I think C might be the correct answer. The current yield and dividend yield seem important for calculating holding period return.

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Cyndy

1 year ago

I think it's actually A. The holding period return should account for inflation as well.

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Clarinda

1 year ago

I agree, B is the correct answer. The holding period return includes both capital gain and dividend yield.

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Zachary

1 year ago

I'm not sure, but I think C might be the right answer. It seems like the current yield and dividend yield would be important for holding period return.

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Eun

1 year ago

I think it's actually A. The holding period return should consider the capital gain yield and the inflation rate.

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Alonso

1 year ago

I agree, B is the correct answer. The holding period return includes both capital gain and dividend yield.

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Chau

1 year ago

But doesn't the capital gain yield represent the increase in the stock's price, which is an important component of the holding period return?

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Lelia

1 year ago

I disagree, I believe it's the current yield plus the dividend yield.

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Chau

1 year ago

I think the holding period return on a stock is equal to the capital gain yield over the period plus the dividend yield.

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