irst of all let us understand holding return

Total return received from the portfolio or assets over the time.

generally holding return is expressed as a (%)percentage.

Given below is the formulla of holding return total and annually

Holding Period Return =

Income + (End of Period Value – Initial Value) / Initial Value

Annualized HPR =

{[(Income + (End of Period Value – Initial Value)] / Initial Value+ 1}1/t – 1

where t = number of years.

Income =dividends of $3.62 per share

Purchase price =price of $82.77 two years ago

Selling price = today for $76.28

Holding return = 3.62 + (76.28 – 82.77)

=3.62 – 6.49

= (2.87)

= (2.87) / 82.77 x 100

= (3.47 ) %

Annualized holding return =

Annualized HPR for Fund X = (-0.0347 + 1)1/2 – 1

= (0.9653)1/2 -1

   = (-0.51735)