Holding Period Rate of Return

When you are looking at the return that you earn (or don't earn) on your investments, one of the first measures that you will look at is the holding period return. When you look at this return, you are looking at income from ALL sources, including; dividends, interest and the change in the price of the asset.

To calculate the holding period return you:

return = (sale price + dividends or interest - purchase price) / purchase price