Hi guys
What is the difference between holding period return and annual holdering period return. The latter uses geometric return while the former uses a mutiplication of annual return
Can somebody explain this please?
The holding period return is simply the total return for the entire holding period, whether that period is less than, equal to, or greater than one year.
An annual holding period return, if it means anything (I’ve never come across that particular phrase), would likely mean the effective annual return that is equivalent to a given holding period return.