Today's term of the day is Absolute return.
Absolute return refers to the return that a particular asset earns for a set time period. Measuring the absolute return entails looking at the appreciation or depreciation a particular asset goes through a set time period. This appreciation or depreciation is expressed as a percentage. An absolute return should not be confused with a relative return because in an absolute return there are no comparisons made with other measures or benchmarks.
Be sure to check back tomorrow for a new term of the day.
