rate of Return is the financial term for an investment's profit. [1] It includes any change in the investment's value as well as any cash flows (or securities, or other investments) that the investor receives
as a result of the investment. Examples include interest payments, coupons, cash dividends, stock dividends, dividends on cash investments, and the payout from derivatives or structured products. It can be calculated as a percentage of the total amount invested or in absolute terms (like $). The holding period rate of return is a different name for the latter. If the amount invested is larger than zero and there is a loss as opposed to a profit, this is referred to as a negative return.
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