The return that an investor can expect to earn by holding onto an investment for a predetermined amount of time without selling it is known as the holding period return.
The proportion corresponds to the ratio of the investment's return to its purchase price.
The total return received from holding an asset or portfolio of assets over a specified time period—known as the holding period—is referred to as the holding period return, and it is typically expressed as a percentage.
The total returns from the asset or portfolio—income minus changes in value—are the basis for the calculation of the holding period return.
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The universe .
The Big Bang theory if the thought to be the creation of everything
Answer:
Present Value= 38,554.33
Explanation:
Giving the following information:
The investment promises to pay $10,000 a year in perpetuity. The required rate of return is 10 percent and the first $10,000 payment starts in 10 years.
<u>We will separate the calculation in two different steps. First, we calculate the value ten years from now of the annuity. Then we calculate the present value.</u>
The present value of the annuity (10 years from now):
PV= Cf/i
Cf= cash flow
PV= 10,000/0.10= 100,000
Now, we calculate the value today:
PV= FV/ (1+i)^n
PV= 100,000/ 1.10^10= 38,554.33
If the business has too many taxes it can go out of Business.