Total Return

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What is 'Total Return'

Total return, when measuring performance, is the actual rate of return of an investment or a pool of investments over a given evaluation period. Total return includes interest, capital gains, dividends and distributions realized over a given period of time.

BREAKING DOWN 'Total Return'

Total return accounts for two categories of return: income and capital appreciation. Income includes interest paid by fixed-income investments, distributions or dividends. Capital appreciation represents the change in the market price of an asset.

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RELATED FAQS
  1. Which is more important - dividend yield or total return?

    Learn to distinguish between those times when dividend yield or total return is a more useful performance metric for a company's ... Read Answer >>
  2. What is the difference between dividends and capital gains?

    Read about some of the differences between dividends and capital gains, the two primary ways of accumulating wealth through ... Read Answer >>
  3. What is the difference between a company's annual return and its annualized return?

    Understand the importance of calculating a company's annual return and its annualized return, and learn the differences between ... Read Answer >>
  4. What is the difference between capital gains and investment income?

    Learn about the difference between capital gains and other types of investment income, such as dividends paid on stock or ... Read Answer >>
  5. What is the difference between yield and return?

    Because investors are very concerned with how well their investments are performing or how they are expected to perform, ... Read Answer >>
  6. Cousin Eddie purchased 250 shares of WES stock for $10,000. One year later ...

    The correct answer is a) For equity investments, the total return is Read Answer >>
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