Showing posts with label meaning of annual holding period yield. Show all posts
Showing posts with label meaning of annual holding period yield. Show all posts

Monday, October 21, 2024

How To Measure Holding Period Yield & Annual Holding Period Yield

Holding Period Return (HPR) to an annual percentage rate is to derive a percentage return, referred to as the holding period yield (HPY). The HPY is equal to the HPR minus 1.
To derive an annual HPY, you compute an annual HPR and subtract 1. Annual HPR is found by:


Assume an investment that cost $250 and is worth $350 after being held for two years:

What Factors do Influence the Nominal Risk-Free Rate (NRFR)?

A n investor would be willing to forgo current consumption in order  to increase future consumption at a rate of exchange called the risk-fr...