Annual return can be a preferable metric to use over simple return when you want to evaluate how successful an investment has been, or to compare the returns of two investments you've held over ...

How not to calculate an annual return You can't simply divide your simple return by the number of years held because of the compounding power of money. We can use a dramatic example to illustrate why.

The total return of a stock going from $10 to $20 and paying $1 in dividends is 110%. It may seem simple at first glance, but total returns are one of the most important financial metrics around.

Calculate annual return: Adjust purchase price for splits, then annualize simple return. Dividends can be included by using dividend-adjusted prices in return calculations.

To calculate the return of a stock index between any two points in time, follow these steps: First, find the price level of the chosen index on the first and last trading days of the period you're ...

Many investors focus on how a stock's price changes over time, but that doesn't tell the entire story. Calculating total return is a valuable tool.

Year-to-date (YTD) return is the amount of profit or loss on investments during the year. Learn how to calculate YTD return and discover its importance.

One simple but powerful method investors can use to assess the risk and reward of a stock portfolio is using the Capital Asset Pricing Model, or CAPM, model for expected returns.

Calculating the return One of the best methods for calculating an average return for a stock investment is the XIRR function in Excel.

How to Calculate the Value of Preferred Stock Calculating the value of preferred stock involves taking into account fixed dividend payments and the required rate of return.