The average yearly profit (or loss) from an investment calculated over a period of years. Often confused with "compound annual return. (Please see compound annual return.)
The expected annual return on an investment, including interest and dividends, expressed as a percentage.
Average Annual Return is used to compare returns over different periods on a consistent basis with the unit being years, hence per annum. Normally only returns over periods greater than one year are annualised. The average annual return is the rate that an investor would have earned in each year to achieve the total cumulative return over the period.
The average performance return over a period of years taking into effect compounding.
The cumulative return divided by the number of years of the life of the investment or account, with the compounding effect factored in. In reverse, the average annual return times a given number of years equals the cumulative return for that time frame. AAR is used to compare returns of two or more investments of unequal track records.
Cumulative gains and losses divided by the number of years of an investment's life, with compounding taken into account. The measure is used to compare returns on investments for periods ranging from partial to multiple years. Cumulative gains and losses divided by the number of years of an investment's life, with compounding taken into account. The measure is used to compare returns on investments for periods ranging from partial to multiple years.
The percent profit your portfolio is making on a yearly basis. If the report period is shorter or longer than a year, the average annual return is converted to an annual rate.
The increase in value of an investment, expressed as a percentage per year and taking compounding into account.
