TOTAL RETURN Meaning and
Definition
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Total return refers to the overall financial performance of an investment over a specific time period, taking into account both the capital appreciation or depreciation and any income generated from the investment. It represents the net gain or loss experienced by an investor, including both investment returns and other applicable costs or expenses.
Total return is a comprehensive measure that considers all sources of returns associated with an investment, such as dividends, interest, capital gains, and distributions. It provides a holistic view of an investment's performance and is typically expressed as a percentage or a monetary value.
This metric accounts for the reinvestment of any income generated by the investment, thereby compounding the returns. It helps investors evaluate the true profitability of holding an investment by factoring in all relevant components that contribute to the overall return.
Total return can be applied to various financial instruments, including stocks, bonds, mutual funds, and exchange-traded funds (ETFs). It enables investors to compare the performance of different investments on an equal footing and make informed decisions based on the overall return potential.
Additionally, total return considers the impact of expenses, taxes, and transaction costs associated with an investment, providing a more accurate representation of the actual profits or losses incurred by the investor. It is an essential measure for assessing the long-term performance of an investment and determining its viability as a wealth-building instrument.
Common Misspellings for TOTAL RETURN
- rotal return
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- 6otal return
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- tital return
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- toral return
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- totzl return
- totsl return
Etymology of TOTAL RETURN
The word "total" originated from the Latin word "totalis", which means "whole" or "entire". It came into the English language via the Old French word "total", which had a similar meaning.
The word "return" has its roots in the Latin word "retrorsus", which means "backward" or "behind". It entered English through the Old French word "retourner", which means "to turn or direct back".
When combined, "total return" refers to the complete or overall amount gained or received from an investment, including both income and capital appreciation.
Overall, the etymology of "total return" can be traced back to Latin and Old French origins, where the individual words evolved and were eventually combined to create the phrase as we use it today.
