Close Menu
Crypto Chain Post
    Trending

    $173 Billion Volume in May 2025

    June 4, 2025

    Is the Altcoin Season Upon Us? Analysis Firm Responds with Two Metrics

    June 4, 2025

    SEC Chairman Talks About Bitcoin (BTC) and Cryptocurrencies! Are New Rules On The Way?

    June 4, 2025

    ANIME Fights Market Vows With 23% Rise | Meme Coins To Watch Today

    June 4, 2025

    DePIN to reach $3.5T by 2028 on crypto, AI convergence: WEF

    June 4, 2025
    Facebook X (Twitter) Instagram TikTok Telegram
    • Privacy Policy
    • Terms of use
    • Advertise
    • Contact
    Wednesday, June 4
    Crypto Chain Post
    Price Index Newsletter
    • Home
    • News
      • Bitcoin
      • Ethereum
      • Altcoin
    • Blockchain
    • Markets
    • NFTs
    • DeFi
    • Web3
    • Analysis
    • Metaverse
    • Resources
      • Price Index
      • Crypto Heatmap
      • Glossary
      • Exchange
      • Economic Calendar
    • More
      • GameFi
      • ICO
      • Legal
      • Security
    Crypto Chain Post
    Home ยป Absolute Return

    Absolute Return

    News RoomBy News RoomDecember 30, 2022No Comments2 Mins Read

    The term absolute return refers to the return on investment (whether positive or negative) obtained in a specific period of time.

    The return on an investment calculated over a predetermined amount of time is called absolute return. It is a measurement of the overall worth of an asset that has increased or decreased and is expressed as a percentage. It evaluates the overall profit or loss that resulted from the investment and can either be positive or negative.

    To calculate an absolute return, you only need two variables: the current value of your asset/portfolio and the initial value of your asset/portfolio.

    Unlike absolute return, the annualized return is the annual return the investor will receive from their investment. An annualized return rate can be determined by using the compound annual growth rate. The compounding of returns over the course of time is referred to as the compound annual growth rate (CAGR). It provides potential investors an understanding of the results of an investment, but it doesn’t inform them of how unpredictable the investment is.

    Although it is straightforward to calculate an absolute return, it is not easy to translate this figure into terms that are applicable to other types of investments. A clearer picture may be obtained by comparing different types of mutual funds that have traded across a range of different time periods. This is only true if you continually reinvest the money you make from your business.

    It is hard to determine which investment is the most profitable due to the varying time frames and rates of return. This problem is solved by using an annualized return that presents the returns using an expression equivalent to one year.

    Back to Glossary Index Page

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Add A Comment
    Leave A Reply Cancel Reply

    Top News

    Is the Altcoin Season Upon Us? Analysis Firm Responds with Two Metrics

    June 4, 2025

    SEC Chairman Talks About Bitcoin (BTC) and Cryptocurrencies! Are New Rules On The Way?

    June 4, 2025

    ANIME Fights Market Vows With 23% Rise | Meme Coins To Watch Today

    June 4, 2025
    Advertisement
    Demo
    Crypto Chain Post
    • Home
    • Privacy Policy
    • Terms of use
    • Advertise
    • Contact
    © 2025 Crypto Chain Post. All Rights Reserved.

    71-75 Shelton Street, Covent Garden, London United Kingdom, WC2H 9JQ

    Type above and press Enter to search. Press Esc to cancel.