Holding period return is the return from holding an asset or a portfolio of assets. It is also referred to as holding period yield, generally expressed as a percentage.
Holding Period Return = Income + (End Value – Initial Value) / Initial Value
Let’s find the Holding Period Return for an investor, who bought a stock at $50, a year ago and received $5 in dividends over the year. Now, if the stock is trading at $60, then according to the formula;
Holding Period Return = [5 + (60 – 50)] / 50
May 22, 2018
Created: May 22, 2018
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