ANNUAL RETURN

A return of investment produce with a time period, which is expressed as a time-weighted annual percentage. The sources of the returns can include capital appreciation, returns of capital and dividends. The annual return rate is scaled contrary to the initial amount of the investment and signifies a geometric mean instead of a simple arithmetic mean.

The annual return is considered as the de facto method for the comparison of the performance investments with the liquidity, which includes commodities, funds, bonds, stocks, and some kinds of derivatives. Various asset classes are considered to posses different strata of annual returns.

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