Holding period return

Holding period return (HPR) is the total return on an asset or portfolio over the period during which it was held. It is one of the simplest measures of investment performance.

HPR is the percentage by which the value of a portfolio (or asset) has grown for a particular period. It is the sum of income and capital gains divided by the initial period value (asset value at the beginning of the period).

HPR = ((Present Value, or face Value, End-Of-Period Value) + (Any Intermediate Gains eg. Dividends) - (Initial Value)) /(Initial Value)

HPR_n = Income + (P_n+1 – P_n)/ P_n

Annualized holding period return is the annual rate of return that when compounded t times, would have given the same t-period holding return as actually occurred from period 1 to period t.