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Keywords:
Alphaprofit,
Cagr,
Grew,
Portfolio,
Annual
The return an investment would require in order to achieve a set, cumulative...
Measure of the rate at which an investment or portfolio has grown in value over a period of years, averaged out on a yearly basis. Varies from "average annual return" in that it measures what the fixed annual rate of return of an investment would have been based on its total long-term return. For instance, a stock that grows 75 percent in three years would have an "average annual return" of 25 percent (75% divided by 3 = 25%), and a compound annual return (calculated through a complex formula) of about 20 percent. In other words, if an investment were to go up 20 percent each year for three years, through compounding, that would equal a total of a 75 percent return. (See average annual return.)
See: Compound Annual Growth Rate
A calculated number that describes the rate at which an investment has grown if it grew at a steady rate. More on AlphaProfit Model Portfolio Compound Annual Returns
Also referred to as the compound annual growth rate (CAGR). Compound return measures the annual growth rate of an investment over a specific period.
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