Answered By: Barbara Coffey
Last Updated: Oct 01, 2019     Views: 38

Total return = the capital appreciation (depreciation) and dividends/interest.  The formula becomes more complex if the dividends are reinvested in the security being analyzed as then the timing of dividend payments and intermediate prices become relevant.  

The formula :

Return =(Ending value of asset +  Ending value of the issued and invested dividends/interest) / Beginning value. 

To annualize = Return^(1/years)

 

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