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.

RELATED TERMS
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  2. Systematic Risk

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  4. Expected Return

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