Asked by: Xiaolin Kachalin
asked in category: General Last Updated: 28th April, 2020

Can holding period return be negative?

A holding period return of a common stock is the percentage return you earn over a certain period of time based on the change in stock price and the dividends you receive from the stock. A negative holding period return means you expect the investment will lose money.

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Likewise, people ask, what is your holding period return?

In finance, holding period return (HPR) is the return on an asset or portfolio over the whole period during which it was held. It is one of the simplest and most important measures of investment performance. HPR is the change in value of an investment, asset or portfolio over a particular period.

Also, what is the difference between an expected return and a total holding period return? Describe the difference between a total holding period return and an expected return. The holding period return is the total return over some investment or “holdingperiod. The expected return is a return that is based on the probability-weighted average of the possible returns from an investment.

Then, can you have a negative rate of return?

A rate of return can be negative when an investor puts money into a company that, due to poor management or factors beyond its control, struggles during the period of investment. Consider an investor who buys stock in a company for $100 per share.

What does a negative internal rate of return mean?

A negative IRR (internal rate of return) means the sum of post-Investment cash flows is less than the initial investment. For example, if you invest 100 today and only get back four payments of 10 over the next four years, your IRR is approximately negative 29%.

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