Do you want BuboFlash to help you learning these things? Or do you want to add or correct something? Click here to log in or create user.

There are various types of return measures.
**Holding Period Return**
**Arithmetic or Mean Return**
**Geometric Mean Return**
**Money-Weighted Return or Internal Rate of Return**
**Annualized Return**
r_{annual} = (1 + r_{period})^{c} - 1
_{period} is the rate of return per period.
*Example*
^{12} - 1 = 7.44%.
**Portfolio Return**
**Other Major Return Measures**
**gross return** is the return before any fees, expense, taxes, etc. A **net return** is the return after deducting all fees and expenses from the gross return.
**after-tax return** to evaluate mutual fund performance.
**nominal return** and the **real return** are two ways to measure how well an investment is performing. The real return takes into consideration the effects of inflation when calculating how much buying power has changed.
**leverage** to amplify his expected return (and risk).

Refer to Reading 6 for a detailed discussion of this return measure.

Refer to Reading 7 for a detailed discussion of this return measure.

Refer to Reading 7 for a detailed discussion of this return measure.

The dollar-weighted rate of return is essentially the internal rate of return (IRR) on the portfolio. Refer to Reading 6 for a detailed discussion of this return measure.

Annualizing returns allows for comparison among different assets and over different time periods.

where c is the number of periods in a year and r

Monthly return: 0.6%. The annualized return is (1 + 0.6%)

The expected return on a portfolio of assets is the market-weighted average of the expected returns on the individual assets in the portfolio.

where Rp is the return on the portfolio, Ri is the return on asset i and wi is the weighting of component asset i (that is, the share of asset i in the portfolio).

1. A

2. Different types of investments generate different types of income and have different tax implications. For example, in the U.S. the interest income is fully taxable at an investor's marginal tax rate while capital gains are taxed at a much lower rate. Therefore, many investors therefore use the

3. The

4. An investor can also use

If you want to change selection, open original toplevel document below and click on "Move attachment"

status | not read | reprioritisations | ||
---|---|---|---|---|

last reprioritisation on | suggested re-reading day | |||

started reading on | finished reading on |

Do you want to join discussion? Click here to log in or create user.