Actual Return


DEFINITION of 'Actual Return'

The actual gain or loss of an investor. This can be expressed in the following formula: expected return (ex-ante) plus the effect of firm-specific and economy-wide news.

BREAKING DOWN 'Actual Return'

As opposed to expected return, actual return is what investors actually receive from their investments. The discrepancy between actual and expected return is due to systematic and unsystematic risk.

  1. Unsystematic Risk

    Company or industry specific risk that is inherent in each investment. ...
  2. Systematic Risk

    The risk inherent to the entire market or entire market segment. ...
  3. Money-Weighted Rate Of Return

    A measure of the rate of return for an asset or portfolio of ...
  4. Expected Return

    The amount one would anticipate receiving on an investment that ...
  5. Ex-Ante

    A term that refers to future events, such as future returns or ...
  6. Abnormal Return

    A term used to describe the returns generated by a given security ...
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