Calculating Discrete Holding Period Returns

Calculating Discrete Holding Period Returns

As investors or traders, the main objective is to make a profit. Returns can be calculated for a holding period or on an annualised basis, and on a continuously compounded basis or a discrete basis. In this video, Abdulla will provide a formula for calculating returns on a discrete basis for both the holding period and an annual percentage return.    
Overview

Calculating returns can be expressed as a percentage gain or loss on an investment. Investors main objective is to make a profit - a positive return on their investment. These returns can be calculated using the formulae outlined below.

Key learning objectives:

  • Describe the basic properties of calculating returns

  • Identify the relevant formulae for calculating holding period returns and annualised returns

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Summary
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Expert
Abdulla Javeri

Abdulla Javeri

Abdulla’s career in the financial markets started in 1990 when he entered the trading floor of the London International Financial Futures Exchange, LIFFE, and qualified as a pit trader in equity and equity index options. In 1996, Abdulla became a trainer for regulatory qualifications and then for non-exam courses, primarily covering all major financial products.

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