Return

The surplus of the amount received back from an investment, over the initial amount invested.

To facilitate comparisons, return is usually expressed as a percentage of the initial amount invested, most commonly as an effective annual rate of return.

Returns can be negative.

Negative returns mean that the amounts received back from an investment are less than the amounts initially invested.

See also

• Effective annual rate
• Semi-annual basis
• Holding period return
• Performance spread
• Portfolio investment
• Rate of return
• Rewarded risk
• Risk
• Total return