Formula: $R_{HP} = \frac{P_1 - P_0 + D_1}{P_0}$

CFA Level I Glossary

This is holding period return: total return from price change and income over one period, scaled by beginning price. It answers what fraction of starting value you earned. Income must be included even if you focus on capital gains. Omitting D1 or annualizing a single-period return without stating the horizon are frequent mistakes.

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