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Consider two corporations, Ansoft and Singdale. Suppose that, as of today, Ansoft has a 1-year holding period return (HPR) of 34% and 5 ingdale has a 5-year HPR of 45%. Based on the holding period returns, which of the following is true?
A. An investor would have definitely earned the same retum from by Singdale stock a year ago as they would from buying Ansoft stock.
B. You cannot determine from this information whether purchasing Singdale stock a year ago would have lead to a higher return than purchasing Ansoft stock.
C. An inyestor weuld have definitely eamed a higher return by purchasing Singdale stock a year ago, as cpposed to Ansoft stock.
D. An investor would have definitely earned a higher return by purchasing Ansoft stock a yoar ago as opposed to 5 Singdale stock