hpr - + -= +-= 1 1 1 1 HPR and Bonds The previous examples...

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The Holding Period Return Measuring Investment Returns
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The Holding Period Return The HPR can be used in both ex ante and ex post situations. (This means it is a calculation that can be done before-the-fact or after-the-fact, depending on the data that you are using.) The HPR is used to measure short-term returns that don’t involve the time value of money.
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The Holding Period Return Formula 0 1 0 1 P D P P HPR + - =
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The Holding Period Return Formula - Restated Yield Dividend Yield Gains Capital HPR P D P P P HPR P D P P HPR + =
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Unformatted text preview: + -= +-= 1 1 1 1 HPR and Bonds The previous examples assumed that we were calculating returns on stocks where the two types of returns were capital gains/losses and dividends. The same formula can be applied to bonds, except that there would be no dividend received since a bond is a debt instrument. Instead we assume that interest income may be received. HPR and Bonds 1 1 P I P P HPR +-=...
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This document was uploaded on 03/14/2011.

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hpr - + -= +-= 1 1 1 1 HPR and Bonds The previous examples...

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