To compute the Holding period return, holding period yield, expected rate of return, annual HPR, arithmatic mean, geometric mean

OR, Dividend Yield + Capital Gain Yield

**,**standard deviation for historical returns as well as future returns we have extracted some formulas from Reilly/Brown's "Investment Analysis and Portfolio Management". These formulas are as follows -**1. Holding period return (HPR) for single period of a security -**OR,

OR, Dividend Yield + Capital Gain Yield

**2. Holding period return (HPR) for "N"th period, where "N" is the amount of years -**OR, HPR =

OR, HPY =

**3. Holding period yield =**HPR - 1

OR, HPY =

**4. If the HPR is hold on Annual basis then it will be -**

Annual HPR =

Here, "" is the product of HPR.

**5. Average rate of return on the basis of Arithmatic mean -**

OR,

OR,

**6. Average rate of return on the basis of Geometric mean -**

Here, "" is the product of HPR.

**7. Expected rate of return of a security -**

OR,

Here,

Ri = Return for securities in "i"th situation for alternatives

Pi = Probability for occuring each outcome.

**8. Standard Deviation "" for "Historical Returns" -**

Here,

=> If it is a "Sample Distribution" then there will be = N-1

=> If it is a "Population Distribution" then there will be = N

**9. Standard Deviation**

**"" for "Future Returns" -**

**10. Real Risk Free Rate of return -**

**11.Nominal Risk Free Rate of return -**

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