01
Investment return can come from an increase in an asset’s value and from income payments such as interest or dividends.
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02
Total return combines an investment’s gain or loss in value with its investment earnings.
supported03
Rate of return expresses total return relative to the amount invested, commonly as a percentage.
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When comparing compounded investment returns measured over different holding periods, convert them to equivalent annualized returns to place them on a common time basis; use consistent return definitions and cash-flow assumptions.