Concept: Holding Period Return (HPR)

CFA Level I Glossary

Holding period return is the total economic gain over a single interval as a fraction of beginning value. It includes price change and income such as dividends or coupons. In words, it is ending value plus cash distributions, minus beginning value, all divided by beginning value. A common trap is forgetting the income component or annualizing a multi-period HPR incorrectly.

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