Sunday, December 26, 2010

Total Return

Total return is a measure of the total return of an investment; it takes into account all components of return such as dividends, interest, capital gain distributions, and changes in net asset value. Investors should be aware of the total return of their investments. To calculate the total return over a certain period you need to sum up all of the distributions and add that to the final price, then subtract the beginning price, and divide the difference by the beginning price; then multiply by one hundred to convert it to a percentage.

Synonyms: Overall return, Absolute return, Comprehensive return

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