Holding Period Returns - Financial Management

The return from holding an investment is called the holding period return, holding period yield, or realized rate of return. The holding period return can be defined by the following equation.

holding period return

Distributions include the interest on debt or the dividends on stock. To illustrate, suppose you purchased one share of Hershey Foods Corporation common stock for $31 a year ago. During the year, you received $0.80 in dividends, and you now sell the share for $46. Your holding period return would be calculated as

Holding period return (%) = $46 – $31 + $0.80—————————

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