What is the end return?

Field revenues are calculations of the total amount of profit realized from a specific investment over a specific period of time. Usually the end return is evaluated for at least one twelve -month period. The yield of training also shows the level of investment in relation to similar investments. This gives the investor an idea of ​​how well investment compared to similar investment opportunities.

Data generated by returning for travel can be used for comparison purposes in two ways. One of the common applications is to use the number to identify the amount of return in this period and compare this cumulative return to the return of similar shares or securities. The intention is to evaluate the investment held together with similar investments. In the best circumstances, the end return of the detained investment will be shown as equal or better than similar offers.

The second application of Has what is related to the calculation of the percentage of yield rather than the actual value of the dollar. HereFive is the idea of ​​evaluating the performance of investment in connection with similar investments that the investor has available. As with the order of the actual return, the order of the end return, let's hope that the investment that is currently held works at least as its peers.

It is not uncommon for investors to approach the end twelve -month value by performing both calculations. There is some chance that the end return, which is close to the highest ranking in the actual return, does not have to view well with the percentage yield and vice versa. If there is a significant amount of scattering in the ranking positions, the data may lead to discovery of information that helps the investor to determine whether to invest in investment or start to diversify. From this point of view, the end return not only becomes an excellent way to identify a real return but also informed decisions about future investment stratesGií.