What is 'Portfolio Return'
Portfolio return is the monetary return experienced by a holder of a portfolio. Portfolio returns can be calculated on a daily or longterm basis to serve as a method of assessing a particular investment strategy. Dividends and capital appreciation are the main components of portfolio returns.
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BREAKING DOWN 'Portfolio Return'
Portfolio returns can be calculated through various methodologies such as a timeweighted and moneyweighted returns. However, the overall return must be compared to the required benchmarks and risk of the portfolio as well.
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