Business and Personal Finance Dictionary
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
- TOTAL RETURN ANALYSIS
A methodology for calculating an investor's return from an investment. In total return analysis, the investor's returns from interest income paid on the invested principal plus interest income earned from the successive reinvestment of previously earned interest on that investment is combined with projected capital gains or losses. Total return differs from yield-to-maturity first because it can include gains or losses from sales prior to maturity and second because it permits the assumption of a reinvestment rate different from the yield earned on the underlying principal.Back