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  • The Financial Encyclopedia
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Investing

  Investing   |   Terms
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  • July 25, 2020
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Total Return

The return that is calculated by dividing the capital gain/loss and income earned (i.e., the total gains/losses) by the value of the investment at the beginning of the period. For example, if a stock, bought originally for $50, is trading currently at $75, and has received $2 in dividends, then, its total return is:

Total return = [2 + (75- 50)/50] x 100= 54%


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