Absolute return is the return that an asset achieves over a specified period. This measure looks at the appreciation or depreciation, expressed as a percentage, that an asset, such as a stock or a mutual fund, achieves over a given period.
Absolute return differs from relative return because it is concerned with the return of a particular asset and does not compare it to any other measure or benchmark.
- Absolute return is the return that an asset achieves over a certain period.
- Returns can be positive or negative and may be considered unrelated to other market activities.
- Absolute return, unlike relative return, does not make any comparison against other possible investments or to a benchmark.
