Holding period return is a metric that is used to measure the total returns of an asset or portfolio over a given time period, and is expressed as a percentage.
What is Holding Period Return?
Holding period return is the total return earned on an asset or portfolio over a specified period of time. It is expressed as a percentage.
How is Holding Period Return Calculated?
The formula for calculating Holding Period Return is: Holding Period Return = (ending value - beginning value + all cash flows) / beginning value
Key Points
Holding period return is expressed as a percentage
Holding period return is the rate of return of an asset or portfolio over a specific period of time expressed as a percentage. This percentage is calculated by taking the total returns from the asset or portfolio over the period and dividing it by the beginning value.
Holding period return is calculated using total returns from the asset or portfolio
Total returns from an asset or portfolio include any income received plus any capital gains or losses. This means that the holding period return not only accounts for income received, but also for the appreciation or depreciation of the asset or portfolio. This provides a more accurate measure of the performance of the asset or portfolio over a certain period of time.
Get smart about your data.
Connect, sync, and query data from 37+ data sources, without code.
Get unlimited access free for 14 days.