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
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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
historical return ,
expected and forecast.
Kim: Finally! Terms in Finance duplicate like stagflation.
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