Annualized Return
Annualized return converts a cumulative investment result into an equivalent compound yearly rate, subject to cash-flow, fee, and measurement conventions.
Compare completed total return, forward expected return, arithmetic and geometric mean return, and annualized compound performance.
Return measures answer different questions about investment performance. This section separates completed holding-period results from forward-looking estimates and distinguishes arithmetic averages from compound annual growth.
| Guide | Use it when you need to know |
|---|---|
| Total Return | How much an investment gained or lost from price change and income over a defined period. |
| Expected Return | What probability-weighted future return a scenario, valuation, or asset-pricing model implies. |
| Mean Return | How arithmetic, geometric, or weighted averages summarize a defined return sample. |
| Annualized Return | What constant compound yearly rate is equivalent to a longer or shorter cumulative return. |
Before comparing returns, align:
A return label does not reveal every convention. Historical performance is not a forecast, and an expected return is not a guaranteed result or personalized investment recommendation.
Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.
Annualized return converts a cumulative investment result into an equivalent compound yearly rate, subject to cash-flow, fee, and measurement conventions.
Expected return is a probability-weighted estimate of future return. Learn scenario and portfolio formulas, examples, estimation methods, and limitations.
Mean return summarizes a defined set of investment returns. Compare arithmetic, geometric, weighted, historical, and expected means with examples.
Total return combines an investment's price change and income over a stated period. Learn the formula, reinvestment, fee, cash-flow, and comparison rules.