AAFM Exam GLO_CWM_LVL_1 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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Gearldine

1 months 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 months 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 months 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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Adelina

2 months 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

2 months 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

7 days 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

10 days ago

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

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Clarinda

14 days ago

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

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Zachary

18 days 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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