Average Annual Rate of Return

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An Average Annual Rate of Return is an average rate of return for an annual return on investment.



References

2014

  • https://secure.myubiquity.com/d401k/ecs/employee/glossary.html#18
    • QUOTE: This is the hypothetical rate of return that if the fund achieved it over a year's time, it would produce the same cumulative total return if the fund performed consistently over the entire period. A total return is expressed in a percentage and tells you how much money you have earned or lost on an investment over time, assuming that all dividends and capital gains are reinvested.