Glossary of Terms

Total Return 2015-11-11 08:00:00

Total Return

The actual rate of return of an investment or a pool of investments over a given evaluation period which includes income and appreciation.

As a simple example, if an investment produces a yield of 5.0% each year for 3 years, and then is sold at a gain of 20.0%, the investment would have produced a total return of 35.0% (5.0% times 3 years plus 20.0%).

 


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