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Total return definition

A starting point when evaluating active performance is to break total return into two pieces.

Beginner

Total return is a term used in performance measurement, especially for analyzing returns attributed to active management. Mathematically, total return is the sum of the benchmark return and the active return.

Synonym: absolute return


Other Original Content

Quiz

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Benchmark return minus active return is total return? | True or False?

False

In a Sentence

Kay:  Quickly, if the fund's total return  and active return were the same, what was the benchmark return?
Ann:  The benchmark was flat.

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