| 释义 |
compound annual return
compound annual return n (Banking & Finance) the total return available from an investment, deposit, etc, when the interest earned is used to augment the capital. Abbreviation: CAR EncyclopediaSeecarMedicalSeeCARCompound Annual Return
Compound Annual ReturnSee: Compound Annual Growth RateCompound Annual ReturnThe average year-on-year growth rate of an investment over a number of years. While investments usually do not grow at a constant rate, the compound annual return smoothes out returns by assuming constant growth. This makes accounting for the investment tidier. It is calculated as:
Compound annual return = (Ending Value / Beginning Value)^((1 / n) - 1) where n is the length of time of the investment in years. It is also called the compound annual growth rate. See also: Average Annual Growth Rate. |