Respuesta :
The equation for total return as a function of expected and unexpected returns is :
Total return = Expected return + Unexpected return
The real rate of return on an investment or a group of assets over time is known as the total return.
Interest, capital gains, dividends, and realized distributions are all included in the total return.
The overall return is shown as a proportion of the initial investment.
The total return is a reliable indicator of an investment's overall success.
The genuine growth of an investment over time is determined by total return. When determining a rise in value, it's critical to consider the big picture instead of just one return metric.
When evaluating a company's historical performance, total return is used. Calculating predicted future returns helps investors make plans for their retirement or other needs and sets fair expectations for their investments.
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