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Daily Archives: 14 December 2025

Rates of Return

Business, Quantitative MethodBy Zhe14 December 2025Leave a comment

Holding Period Return 0A holding period return, R, is the return earned from holding an asset for a single specified period of time. where the subscript indicates the time of the price or income; (t=0) is the beginning of the period; and (t=1) is the end of the period. A holding period return can be…

Interest Rates and Time Value of Money

Business, Quantitative MethodBy Zhe14 December 2025Leave a comment

An interest rate (or yield), denoted r, is a rate of return that reflects the relationship between differently dated – time – cash flows. Interest rates can be thought of in three ways: Taking the perspective of investors in analysing market-determined interest rates, we can view an interest rate r as being composed of a…

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