Holding Period Return (HPR)

Measure the total return received from holding an asset or portfolio of assets, i.e. the sum of all income and capital growth divided by original investment, on a per-dollar-invested basis

HPR = (P1-P₀+D₁)/ P₀

Notes:

• Difficult to compare returns on different investments with different time frames.
• To make comparisons for them, the annualized calculation is used.

Annualized HPR : [(P₁-P₀+D₁)/ P₀]^1/Y - 1