CAPM Holding Period Returns 

Learn about Holding Period Returns

HPR= End value of an investment/ Beginning value of an investment

Q: An investment of 250 units of a currency becomes 300 units of the same currency after a year.  

*HRY= 300/250= 1.2

The annual return is =1.2-1= 0.2 = 20% (0.2*100)

Quiz: If you received 300 units after 2 years then what is the holding period of return in percent?

Annualized HPY= (HPR)^1/n  where n is the number of years of investment

HPY= (1.2)^1/2                   =( 1.2)^0.5

=1.0954                                   =1.0954-1 * 100

=9.54%