Rolling Returns

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DEFINITION of '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 experienced by investors.

Also known as 'rolling period returns' or 'rolling time periods'.

INVESTOPEDIA EXPLAINS 'Rolling Returns'

For example, the five-year rolling return for 1995 covers Jan 1, 1991, through Dec 31, 1995. The five-year rolling return for 1996 is the average annual return for 1992 through 1996, etc.

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