Holding Period Return refers to the return an investor earns while holding an asset for a period of time. It is expressed as a percentage of the original price. It is composed of two parts: capital gains yield (return realized from the change in stock price) and the dividend yield (return realized from dividends during the period).
Capital Gains Yield = P1 - P0 / P0 Dividend Yield = D / P0
Where, P1 is the price at the end of the period
P0 is the beginning price
D represents any dividends received during the period
We can just combine the two formulas to find the Holding Period Return.
Holding Period Return = Capital Gains Yield + Dividend Yield
HPR = (P1 - P0 + D) / P0
HPR = (19.88 - 21.25 + 0.55) / 21.25
HPR = -0.82 / 21.25
HPR = -0.0385 or -3.9%