What is an 'Actual Return'

An actual return is 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.

  1. Ex-Post

    Another term for actual returns. Ex-post translated from Latin ...
  2. Total Return

    When measuring performance, the actual rate of return of an investment ...
  3. Expected Return

    The amount one would anticipate receiving on an investment that ...
  4. Mean Return

    1. In securities analysis, it is the expected value, or mean, ...
  5. Annual Return

    Annual return is the compound average rate of return for a stock, ...
  6. Against Actual

    An order between two traders looking to hedge their positions, ...
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