holding period return

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Holding Period Return

The return on an investment during the time one holds the investment. 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. It is also called the holding period yield (HPY).
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holding period return (HPR)

The return achieved on an investment including current income and any change in value during an investor's holding period. This measure proves useful in comparing expected returns on different investments. Also called holding period yield.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
(All rates of return are stated as annualized, one-month holding-period yields on a bond interest, or 365-day, basis.)
where [r.sub.m,t] is the holding-period yield between periods t and t+1 (interest being received at the end of the period) and [R.sub.t] is the holding-period yield on the benchmark asset (Barnett, 1978 and 1980).
The extent to which domestic monetary policy affects exchange rates--and through exchange rates, the volume of imports and exports--depends on how sensitive investors' desired portfolio allocations are to the difference between expected holding-period yields. The greater is the sensitivity of demands--that is, the more perfect the substitution between foreign and domestic assets--the greater will be the change in the spot value of the domestic currency for a given change in the domestic interest rate, other things being equal.
2 It is necessary to measure the benchmark rate, R, to construct the Divisia monetary aggregates, and we advocate the use of the upper envelope of the yield-curve-adjusted, holding-period yields on all of the components in the broadest aggregate.