1 Answers
In finance, holding period return is the return on an asset or portfolio over the whole period during which it was held. It is one of the simplest and most important measures of investment performance.
HPR is the change in value of an investment, asset or portfolio over a particular period. It is the entire gain or loss, which is the sum income and capital gains, divided by the value at the beginning of the period.
where the End Value includes income, such as dividends, earned on the investment:
where P n {\displaystyle P_{n}} is the value at the start of the holding period and I n c o m e + P n + 1 {\displaystyle Income+P_{n+1}} is the total value at the end of the holding period.