~/ home / finance / glossary / historical return

We go to great lengths to simplify and standardize terminology because
deciphering the language of Finance can be the greatest challenge
for beginners.

Intermediate

Historical return is the rate of return on an asset, like a stock, bond or fund, over a period of time that occurred in the past. There are several ways to calculate return, the non-compounding version called arithmetic, and the compounding version called geometric, but the key here is to make the destinction between past (historical), present (expected) and future (forecast) for security valuation.

Synonym: realized return

Click box for answer.

True. A regression using returns derives an asset's beta which is used to generate expected return.

**Liz: ***It is now company policy to use the
terms: *
historical return *,
expected and forecast.*

**Kim: ***Finally! Terms in Finance duplicate
like stagflation.*

Many terms have 4-5 minute videos showing a derivation and explanation. If this term had one, it would appear here.

Videos can also be accessed from the YouTube Channel.

If this term had a video, the script would be here.

Our trained humans found other terms in the category
**timeframes** you may find helpful.

For links to all glossary terms and videos click the Outline button below.

Subscribe to the FactorPad YouTube Channel from here.

We move on to discuss the indifference curve . Click Next.

~/ home / finance / glossary / historical return

Keywords:

historical return

realized return

CAPM

Capital Asset Pricing Model

market

stock

bond

past return

performance

backward-looking