Definitions
In plain terms
It combines the change in ending value with eligible cash received while the position was held.
Technical
The calculation requires starting and ending values, intervening cash flows, timing and reinvestment assumptions, currency, fees or taxes, and exact interval boundaries.
Scope
It is not automatically annualized and can differ from a time-weighted portfolio return.
Formula
HPR = (V1 - V0 + CF) / V0HPR=(V_1-V_0+CF)/V_0| Symbol | Meaning | Unit |
|---|---|---|
V0 | starting value | currency |
V1 | ending value | currency |
CF | eligible net cash received | currency |
Output unit: decimal return
Examples
- A governed calculation records holding period return with its exact basis, effective time, source, and units.
Common misconceptions
- Holding Period Return does not have one universal treatment without the applicable methodology, event terms, and data context.
Concept relationships
Related
Where this concept is used
- ImportantSpin-Off Price Adjustment: Separate Parent Price from Distributed ValueD02-F02-A02
- ImportantReturn-of-Capital Adjustment: Keep Price, Return, and Tax Views SeparateD02-F02-A05
- ImportantMerger Predecessor/Successor Mapping: Preserve Identity and Entitlements Without Inventing ContinuityD02-F03-A04
- PrimaryDelisting Return Reconstruction: Separate Observed Proceeds from EstimatesD02-F03-A05
- ImportantGross Total-Return IndexD03-F04-A02
- ImportantNet Total-Return IndexD03-F04-A03
Evidence and governance
- CRSP US Stock and Indexes Databases Data Descriptions Guide Center for Research in Security Prices · official platform documentation
Supports: preferred label, short definition, technical definition, formula
Limits: CRSP conventions, fields, codes, and licensed observations are provider-specific and are not reproduced as universal rules.
- Fintech Builder Glossary Definition Contract The Fintech Builder · internal governed contract
Supports: variant distinction
Limits: Defines governed platform behavior rather than claiming these policies are universally prescribed by external McClellan methodology.
- Reviewed by
- fintech-builder-owner-approved
- Last reviewed
- 2026-07-27
- Next review
- 2027-07-27
- Record status
- published