Holding Period Return
The amount of return from a particular investment thus far. Calculated as a percentage in a per dollar basis, it is difficult to use this to compare to other investments since it is not on a per time basis.
Holding Period Return = Income + (End of Period Value – Initial Value) / Initial Value
Annualized HPR = {[(Income + (End of Period Value – Initial Value)] / Initial Value+ 1}1/t – 1
where t = number of years.
Returns for regular time periods such as quarters or years can be converted to a holding period return through the following formula:
(1 + HPR) = (1 + r1) x (1 + r2) x (1 + r3) x (1 + r4) where r1, r2, r3 and r4 are periodic returns.
Thus, HPR = [(1 + r1) x (1 + r2) x (1 + r3) x (1 + r4)] – 1
*Equation courtesy of Investopedia.com