Actual return意思

"Actual return" is a term used in finance and investing to refer to the actual percentage change in the value of an investment over a specific period of time, taking into account both capital gains or losses and any income received, such as dividends or interest. It is the realized return on an investment, as opposed to a hypothetical or expected return.

The actual return is calculated by taking the difference between the final value of the investment and its initial value, and then dividing that difference by the initial value, over the time period in question. This calculation can be expressed as a formula:

Actual Return = (Final Value - Initial Value) / Initial Value x Time Period

For example, if you invested $1,000 in a stock and after one year the stock was worth $1,100, your actual return would be calculated as follows:

Actual Return = ($1,100 - $1,000) / $1,000 x 1 year Actual Return = $100 / $1,000 x 1 Actual Return = 0.10 x 1 Actual Return = 10%

So, in this example, your actual return on the investment would be 10% for the year.

It's important to note that actual returns can be positive or negative, and they can be affected by various factors such as market conditions, company performance, and economic factors. Additionally, actual returns may differ from expected returns, which are often based on historical data or financial models.