Answered: Explain Computing Holding Period…

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Explain Computing Holding Period Returns?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter1: Accounting And The Financial Statements

Section: Chapter Questions

Problem 10DQ

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Question

Explain Computing Holding Period Returns?

Expert Solution

Step 1

Introduction:

Holding period returns (HPRs):

Holding period return (HPR) is one of the investment performance indicators that are most relevant and simple. HPR can be defined as the return on asset or a return on portfolio over the entire period during it was held. It is nothing but adding the investment income with its appreciation.

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