Suppose a Portfolio Has a Beginning Balance of $1 Million

Multiple Choice

Suppose a portfolio has a beginning balance of $1 million and has a return of 10% the first period and 20% the second period. Then $500,000 is added to the account. The subsequent return is -9% in the third period and 25% return in the fourth period. Using the daily valuation method, what is the holding period return over the four periods?

A) 38%
B) 42%
C) 46%
D) 50%