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Total Dollar Return (TDR) = Income + Price Change

Total Dollar Return (TDR) = Income + Price Change. Holding Period Return (HPR) = Income + Price Change Purchase Price. E.g. :

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Total Dollar Return (TDR) = Income + Price Change

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  1. Total Dollar Return (TDR) = Income + Price Change Holding Period Return (HPR) = Income + PriceChange Purchase Price

  2. E.g. : Mr A purchases 100 shares of Stock B for RM2,318.75. A year later, Mr A receives a total of RM13.50 in dividends for the shares (income) and the market price of Stock B has risen to RM3,287.50 (price change). Calculate TDR and HPR. Answer : TDR = RM13.50 + (RM3,287.50 – RM2,318.75) = RM982.25 HPR = RM982.25/RM2,318.75 = 0.4236 or 42.36%

  3. Annualized HPR = (1 + HPR)1/n – 1 where n = no of years in the holding period The term (1 + HPR) = Return relative, which is equal to : Return relative = Income + Ending value of an investment Purchase price Annualized HPR = (Return Relative)1/n - 1

  4. E.g. : Asset HPR (%) HPR(decimal) Holding period Stock A 90 0.9 4 years Calculate Annualized HPR. Answer : Annualized HPR = (1 + 0.90)1/4 - 1 = 0.1741 or 17.41%

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