Average Annual Return
What is it? A calculation that converts a cumulative total return into an annualized figure. For example, an investment that has a cumulative return of 30% over three years--meaning it has gained 30% for the entire three-year period--has an annualized gain of 9.1%. That is, the securitys average annual return for each of those three years was 9.1%. (Total return is the sum of any appreciation or depreciation in the value of a security, plus the value of any dividends produced by the security.)Added By: Jordan
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