Absolute Return

Absolute Return is expressed in percentage form and is the total return an asset or fund achieves over a predetermined period of time. Absolute returns are typically seen associated with both stocks and mutual funds and are used by investors to perform market research.

What makes an absolute return different from a relative return is that a relative return compares itself to another measure of benchmark such as the S&P 500 market index. An absolute return focuses solely on the equity it is tied to.

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