BA 340 - Oregon State University

These percentage returns are also referred to as holding period returns (HPRs). If the period is not one year, then we can calculate the equivalent annual rate of return by annualizing these returns: Annualized return: (1 + HPR)n – 1. where n represents 1 / (# of years); so if the period is 2 years, n = ½; if the period is ½ yr, n = 2 ... ................
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