Holding period return
Price change plus income, relative to the opening price.
R = (P₁ − P₀ + I) / P₀
Formula Sheet
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How it works?Quantitative Methods
Geometric mean return
Used throughout Rates and Returns. Keep the inputs and the period convention consistent before you substitute.
Rɢ = [∏(1 + Rᵢ)]¹⁄ⁿ − 1
Future and present value
Used throughout Rates and Returns. Keep the inputs and the period convention consistent before you substitute.
FVₜ = PV(1 + r)ᵗ ⇔ PV = FVₜ / (1 + r)ᵗ
Economics
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