Quantitative Methods
Holding period return
Holding period return is the total returns received from holding a particular investment portfolio of assets. The holding period return rate usually calculated as the total sum of all income and capital gains of the investments divided by the investment value at the beginning of the trading period being measured (Hallerbach, 2003). It is a very basic way used to measure the rate of return obtained from a particular investment. Therefore, its calculation is based on a unit-value-invested rather than on a time basis. This, however, makes it difficult to provide a comparison of returns on different investments with also different ...