Holding Period Return (HPR)

Holding Period Return (HPR) The rate of return for the period of holding of a share. It is calculated by adding price change (current market price minus purchase price) and dividends, the sum then divided by the purchase price and multiplied by 100. Thus: purchase price Rs 6,000, current market price Rs 7,800 dividend Rs 500. The HPR will be (7800 – 6000)+500 divided by 6000; equals 383; multiplied by 100, equals 38.3%. The larger the holding period return, the faster has been the grown of a share.

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