Return

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Dictionary Says

Definition of 'Return'

The gain or loss of a security in a particular period. The return consists of the income and the capital gains relative on an investment. It is usually quoted as a percentage.
Investopedia Says

Investopedia explains 'Return'

The general rule is that the more risk you take, the greater the potential for higher return - and loss.

Return is also used as an abbreviation for income tax return, see 1040 Form.

Related Definitions

  •

    1040 Form

    The standard Internal Revenue Service (IRS) form that individuals use to file their annual income tax returns. The form contains sections that require taxpayers to disclose their ...
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  • 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.
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  • Eat Well, Sleep Well

    An adage that, referring to the risk/return trade-off, says that the type of security an investor chooses depends on whether he or she wants to eat well or sleep well.
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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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    • Compound Return

      The rate of return, usually expressed as a percentage, that represents the cumulative effect that a series of gains or losses have on an original amount of capital over a period of time. ...
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    • Real Rate Of Return

      The annual percentage return realized on an investment, which is adjusted for changes in prices due to inflation or other external effects. This method expresses the nominal rate of ...
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    • Rolling Returns

      The annualized average return for a period ending with the listed year. Rolling returns are useful for examining the behavior of returns for holding periods similar to those actually ...
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    • Required Rate Of Return - RRR

      The minimum annual percentage earned by an investment that will induce individuals or companies to put money into a particular security or project. The required rate of return (RRR) is ...
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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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    • Tax Return

      1. The tax form or forms used to file income taxes with the Internal Revenue Service (IRS). Tax returns often are set up in a worksheet format, where the income figures used to calculate ...
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