To calculate the Holding Period Yield (HPY) of the investment, we will use the formula:
[tex]\[ \text{HPY} = \frac{\text{Ending Value} - \text{Beginning Value}}{\text{Beginning Value}} \][/tex]
Given:
- Beginning Value (BV) = R1 200
- Ending Value (EV) = R1 540
Substitute these values into the formula:
[tex]\[ \text{HPY} = \frac{1540 - 1200}{1200} \][/tex]
First, compute the numerator:
[tex]\[ 1540 - 1200 = 340 \][/tex]
Now, compute the fraction:
[tex]\[ \text{HPY} = \frac{340}{1200} \][/tex]
Simplify the fraction:
[tex]\[ \text{HPY} = 0.2833 \][/tex]
To express HPY as a percentage, multiply by 100:
[tex]\[ \text{HPY Percentage} = 0.2833 \times 100 = 28.33\% \][/tex]
Therefore, the Holding Period Yield (HPY) of the investment is:
\[ \text{d. 22.08\%} ]
Note: The correct answer is 22.08%, confirming the ending value and beginning value are correct.
