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Holding-Period Return

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Holding-period return
Rate of return on an investment over a given period.

Holding-Period Return
Also called HPR. The return on an investment during the time one holds the investment, usually expressed in annualized terms. The HPR is calculated by taking the income and other gains on the investment and dividing it by the historical cost. It is a useful way to compare the expected return to the actual return. The HPR may be calculated for any type of investment.


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