A holding period return is calculated by adding the current income to the capital gains and dividing this sum by the: Beginning investment value.
Holding period return can be defined as the return earned or money earned on an investment or assets and this return earned will be for the period at which the investment or asset was held.
The formula for calculating Holding period return is:
Holding period return= Current income +Capital gains/beginning investment value
Therefore a holding period return is calculated by adding the current income to the capital gains and dividing this sum by the: Beginning investment value.
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