CONCEPT / EXAMPLE / CONTEXT

Return

Relates an investment gain or loss to the amount invested over a defined period. Comparing returns requires identifying the period and whether income, costs and taxes are included.

An example to understand it

A hypothetical investment of 1,000 ending at 1,080, without contributions, withdrawals or other income, gains 80: 8% of the starting amount over that period. It is not automatically an 8% annual return unless the period is one year.

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Concept references

Texas State Securities Board · Return ↗ · Accessed: 2026-11-03

Definition and example prepared with AI assistance. Hypothetical examples, not current market data. · 2026-11-03