What is holding period return, Finance Basics

Assignment Help:

What is Holding Period Return/Return

Holding period yield (HPY) measures the total return from an investment during a given time period in which asset is held by the investor. It is to be noted that HP doesn't mean that security is actually sold and the gain or loss is actually realised by investor. Concept of HPY is applicable whether one is measuring the realized return or estimating the future return. It can be calculated as follows:

HPY = (Any cash payments received + price change over the holding period) / Price at which the asset is purchased (beginning price)

 


Related Discussions:- What is holding period return

Yield to Maturity, A bondholder buys a bond maturing in two years for Rs. 1...

A bondholder buys a bond maturing in two years for Rs. 120 and earns Rs.15 per annum as interest. His YTM is ______ %.

Discounted cash flow rate of return of a project, Given the following Prese...

Given the following Present Value Plot for Projects A and B, which are mutually exclusive projects, answer the following questions: (i) What is the DCFROR for Project A? fo

Secondary markets - financial markets, Secondary Markets - Financial Market...

Secondary Markets - Financial Markets Economic Benefits or Role of Secondary Markets in the Economy are as: 1. It provides people a chance to buy shares therefore distribut

APR, Determine how much of a total loan payment applies towards principal a...

Determine how much of a total loan payment applies towards principal and how much applies towards interest for a home mortgage of $177,219 with a fixed APR of 7.5% of 20 years

Investment bank, Investment Bank A lending entity is engaged in all the...

Investment Bank A lending entity is engaged in all the phases of privacy offerings the including managing, underwriting, trading, and the distributing new security issues.

Periodic inventory system, Suppose the Alctz Display Flowers pte  Ltd uses ...

Suppose the Alctz Display Flowers pte  Ltd uses the periodic inventory system and  average cost to explain inventory cost. (a)  Determine the ending inventory cost as at Decembe

Uncertainty and safety stocks, Uncertainty and Safety Stocks Usually r...

Uncertainty and Safety Stocks Usually requirements may not be certain and thus the firm holds safety stock to safeguard stock out cases.The safety stock guards against delays

Debt finance, Debt Finance Debt finance is a fixed return finance like...

Debt Finance Debt finance is a fixed return finance like the cost as interest is fixed on the par value as face value of debt. This is ideal to require if there's a strong equ

Social responsibility - objectives of business entity, Social responsibilit...

Social responsibility - Objectives of Business Entity The firm must decide where to operate strictly in their shareholders' best interests or be responsible to their staff, th

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd