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The return an investment would require in order to achieve a set, cumulative...
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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.)
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See: Compound Annual Growth Rate
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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
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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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