Component |
Description |
Beginning Investment Value |
The initial value of the investment at the start of the period. |
Ending Investment Value |
The value of the investment at the end of the period. |
Dividends or Interest Earned |
The total amount of dividends or interest earned during the period. |
Total Return |
The total return on the investment, including both capital gains and income. |
Formula |
Total Return = (Ending Investment Value – Beginning Investment Value + Dividends or Interest Earned) / Beginning Investment Value |
Purpose |
Used to measure the overall performance of an investment over a specific period. |