From the course: Excel for Investment Professionals

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Computing holding period returns

Computing holding period returns - Microsoft Excel Tutorial

From the course: Excel for Investment Professionals

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Computing holding period returns

- [Instructor] Once you have basic pricing data on a stock, you may want to go through and calculate returns for that stock. Let's see how this is done. Now, you may have a file with date and price closing data already. I've gone through and supplemented that with some information that we'd like to calculate in this section. I'm going to add a column for returns, a section for the mean 30-day return, and a random beginning and end date that I want to look up the prices on. Now, what I want to do to begin with is go through and complete a common task. I want to compute a 30-day holding period. In order to do that, I'm going to need to advance 30 days in pricing, right? So we're looking at what's the return if we'd bought on January 9th, 2014, and then fast forwarded 30 days. If we come down 30 days, we'll be at February 21st, 2014, and our return for that 30-day period is B31, our final price, minus B2, $35.53, which is our initial price, all divided by our initial price. This gives us…

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