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Holding period return (HPR)

Principles of Finance glossary · Valuation of Bonds & Stocks

Definition

The total return over a specific holding period.

Holding period return (HPR) in plain English

The holding period return is simply: over the whole time you owned an investment, how much did you make on it, in percent? It rolls everything into one number — the price going up or down plus any cash it paid you along the way (like dividends) — divided by what you originally put in. If you buy something for $100, collect $5 in dividends, and sell it for $110, your holding period return is $15 on $100, or 15%. It's the plain, total scorecard for one stretch of ownership, without worrying about how long that stretch was.

Also called: HPR

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Practice Holding period return (HPR)

An investor buys a 1,000 par bond for 1,050. The bond pays a semi-annual coupon of 30. If the bond is sold 6 months…

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