Actual Return

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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 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 TERMS
  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. Average Return

    The simple mathematical average of a series of returns generated ...
  5. Abnormal Return

    A term used to describe the returns generated by a given security ...
  6. Ex-Ante

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