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Annualized holding period return |
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Definition of Annualized holding period returnAnnualized holding period returnThe annual rate of return that when compounded t times, would have
Related Terms:CARs (cumulative abnormal returns)a measure used in academic finance articles to measure the excess returns an investor would have received over a particular time period if he or she were invested in a particular stock. PPF (periodic perpetuity factor)a generalization formula invented by Abrams that is the present value of regular but noncontiguous cash flows that have constant growth to perpetuity. Abnormal returnsPart of the return that is not due to systematic influences (market wide influences). In After-tax real rate of returnMoney after-tax rate of return minus the inflation rate. Annualized gainIf stock X appreciates 1.5% in one month, the annualized gain for that sock over a twelve Arithmetic average (mean) rate of returnArithmetic mean return. Arithmetic mean returnAn average of the subperiod returns, calculated by summing the subperiod returns Average accounting returnThe average project earnings after taxes and depreciation divided by the average Average collection period, or days' receivablesThe ratio of accounts receivables to sales, or the total Average rate of return (ARR)The ratio of the average cash inflow to the amount invested. Compounding periodThe length of the time period (for example, a quarter in the case of quarterly Credit periodThe length of time for which the customer is granted credit. Cross holdingsOne corporation holds shares in another firm. Cumulative abnormal return (CAR)Sum of the differences between the expected return on a stock and the Discount periodThe period during which a customer can deduct the discount from the net amount of the bill Discounted payback period ruleAn investment decision rule in which the cash flows are discounted at an Dollar returnThe return realized on a portfolio for any evaluation period, including (1) the change in market Dollar-weighted rate of returnAlso called the internal rate of return, the interest rate that will make the Evaluation periodThe time interval over which a money manager's performance is evaluated. Ex post returnRelated: holding period return Exante returnThe expected return of a portfolio based on the expected returns of its component assets and Excess return on the market portfolioThe difference between the return on the market portfolio and the Excess returnsAlso called abnormal returns, returns in excess of those required by some asset pricing model. Expected future returnThe return that is expected to be earned on an asset in the future. Also called the Expected returnThe return expected on a risky asset based on a probability distribution for the possible rates Expected return on investmentThe return one can expect to earn on an investment. See: capital asset Expected return-beta relationshipImplication of the CAPM that security risk premiums will be Geometric mean returnAlso called the time weighted rate of return, a measure of the compounded rate of Holding companyA corporation that owns enough voting stock in another firm to control management and Holding periodLength of time that an individual holds a security. Holding period returnThe rate of return over a given period. Horizon returnTotal return over a given horizon. Incremental internal rate of returnIRR on the incremental investment from choosing a large project Internal rate of returnDollar-weighted rate of return. Discount rate at which net present value (NPV) Leveraged required returnThe required return on an investment when the investment is financed partially by debt. Market returnThe return on the market portfolio. Money rate of returnAnnual money return as a percentage of asset value. Multiperiod immunizationA portfolio strategy in which a portfolio is created that will be capable of Multiple rates of returnMore than one rate of return from the same project that make the net present value Net periodThe period of time between the end of the discount period and the date payment is due. Neutral periodIn the Euromarket, a period over which Eurodollars are sold is said to be neutral if it does not Portfolio internal rate of returnThe rate of return computed by first determining the cash flows for all the Rate of return ratiosRatios that are designed to measure the profitability of the firm in relation to various Realized returnThe return that is actually earned over a given time period. Required returnThe minimum expected return you would require to be willing to purchase the asset, that is, ReturnThe change in the value of a portfolio over an evaluation period, including any distributions made Return on assets (ROA)Indicator of profitability. Determined by dividing net income for the past 12 months Return on equity (ROE)Indicator of profitability. Determined by dividing net income for the past 12 Return on investment (ROI)Generally, book income as a proportion of net book value. Return on total assetsThe ratio of earnings available to common stockholders to total assets. Return-to-maturity expectationsA variant of pure expectations theory which suggests that the return that an Riskless rate of returnThe rate earned on a riskless asset. Safety-net returnThe minimum available return that will trigger an immunization strategy in a contingent Subperiod returnThe return of a portfolio over a shorter period of time than the evaluation period. T-period holding-period returnThe percentage return over the T-year period an investment lasts. Time-weighted rate of returnRelated: Geometric mean return. Total dollar returnThe dollar return on a nondollar investment, which includes the sum of any Total returnIn performance measurement, the actual rate of return realized over some evaluation period. In Unleveraged required returnThe required return on an investment when the investment is financed entirely Waiting periodTime during which the SEC studies a firm's registration statement. During this time the firm Withholding taxA tax levied by a country of source on income paid, usually on dividends remitted to the Workout periodRealignment period of a temporary misaligned yield relationship that sometimes occurs in RATE OF RETURN ON STOCKHOLDERSâ€™ EQUITYThe percentage return or profit that management made on each dollar stockholders invested in a company. Hereâ€™s how you figure it: RATE OF RETURN ON TOTAL ASSETSThe percentage return or profit that management made on each dollar of assets. The formula is: RETURN ON INVESTMENT (ROI)In its most basic form, the rate of return equals net income divided by the amount of money invested. It can be applied to a particular product or piece of equipment, or to a business as a whole. Accounting periodThe period of time for which financial statements are produced â€“ see also financial year. Accounting rate of return (ARR)A method of investment appraisal that measures Internal rate of return (IRR)A discounted cash flow technique used for investment appraisal that calculates the effective cost of capital that produces a net present value of zero from a series of future cash flows and an Period costsThe costs that relate to a period of time. Return on capital employed (ROCE)The operating profit before interest and tax as a percentage of the total shareholdersâ€™ funds plus Return on investment (ROI)The net profit after tax as a percentage of the shareholdersâ€™ investment in the business. Target rate of return pricingA method of pricing that estimates the desired return on investment to be achieved from the Periodic inventory systemAn inventory system in which the balance in the Inventory account is adjusted for the units sold only at the end of the period. Purchase returnsA contra account that reduces purchases by the amount of items purchased that were subsequently returned. Sales returnsA contra account that offsets revenue. It represents the amount of sales made that were later returned. internal rate of return (IRR)The precise discount rate that makes the return on assets (ROA)Although there is no single uniform practice for return on equity (ROE)This key ratio, expressed as a percent, equals net return on investment (ROI)A very general concept that refers to some return on salesThis ratio equals net income divided by sales revenue. Average Collection PeriodAverage number of days necessary to receive cash for the sale of Internal Rate of Return (IRR)The discount rate that equates the present value of the net cash Payback PeriodThe number of years necessary for the net cash flows of an Return on Common Equity RatioA measure of the percentage return earned on the value of the Return on Total Assets RatioA measure of the percentage return earned on the value of the accounting rate of return (ARR)the rate of earnings obtained on the average capital investment over the life of a capital project; computed as average annual profits divided by average investment; not based on cash flow compounding periodthe time between each interest computation internal rate of return (IRR)the expected or actual rate of payback periodthe time it takes an investor to recoup an period costcost other than one associated with making or acquiring inventory periodic compensationa pay plan based on the time spent on the task rather than the work accomplished return of capitalthe recovery of the original investment (or principal) in a project return on capitalincome; it is equal to the rate of return multiplied by the amount of the investment return on investmenta ratio that relates income generated Internal rate of return a. The average annual yield earned by an investment during the period held. Odd first or last periodFixed-income securities may be purchased on dates Internal rate of returnThe rate of return at which the present value of a series of future Reporting periodThe time period for which transactions are compiled into a set of financial statements. book rate of returnAccounting income divided by book value.
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