Type the Excel formula for the holding-period return, with the sale price in B2, the purchase price in B1 and the income received in B3.
Type the Excel formula for the holding-period return, with the sale price in B2, the purchase price in B1 and the income received in B3.
Answer
=(B2-B1+B3)/B1
(P₁ − P₀ + income) ÷ P₀. For the bond: (98.10 − 96.20 + 5.50)/96.20 = 0.076923; for the share: (45.30 − 42 + 1.20)/42 = 0.107143.
Bigel, Introduction to Financial Analysis (CC BY 4.0) §12.2–12.3 — HPR shape only; OpenStax Principles of Finance §10.2 — reference only; original bond, share and prices