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Actual Return

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Dictionary Says

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.
Investopedia Says

Investopedia explains '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.

Related Definitions

  •

    Abnormal Return

    A term used to describe the returns generated by a given security or portfolio over a period of time that is different from the expected rate of return. The expected rate of return is ...
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  • Expected Return

    The average of a probability distribution of possible returns, calculated by using the following formula:
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  • Ex-Post

    Another term for actual returns. Ex-post translated from Latin means "after the fact". The use of historical returns has traditionally been the most common way to predict the probability ...
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    • Ex-Ante

      A term that refers to future events, such as future returns or prospects of a company. Using ex-ante analysis helps to give an idea of future movements in price or the future impact of a ...
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    • Systematic Risk

      The risk inherent to the entire market or entire market segment. Also known as "un-diversifiable risk" or "market risk."
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    • Unsystematic Risk

      Company or industry specific risk that is inherent in each investment. The amount of unsystematic risk can be reduced through appropriate diversification. Also known as "specific risk", ...
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    • Dividend Adjusted Return

      When a stock's return is calculated using not only the stock's capital appreciation, but also all dividends paid to shareholders. This adjustment provides investors with a more accurate ...
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    • Average Return

      The simple mathematical average of a series of returns generated over a period of time. An average return is calculated the same way a simple average is calculated for any set of ...
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    • On Stream

      An investment that is on track to earn its expected return. Stocks, funds or any other investment vehicle that is presently performing in a way that allows it to reach the same target ...
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    • Money-Weighted Rate Of Return

      A measure of the rate of return for an asset or portfolio of assets. It is calculated by finding the rate of return that will set the present values of all cash flows and terminal values ...
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