How do you calculate obsolute return?

Answer 1

To calculate absolute return, subtract the initial investment from the final value, divide by the initial investment, and multiply by 100 for percentage. Formula: Absolute Return = [(Ending Value - Beginning Value) / Beginning Value] × 100.

For easy calculations, use online tools like the investment growth simulator at fcalculator. com/finance.html, which handles compound interest and returns with custom inputs.

Answer 2

Absolute return measures the profit or loss generated by an investment over a specific period, regardless of market conditions. To calculate it, subtract the initial investment amount from the final value of the investment, then divide by the initial investment and multiply by 100 to express it as a percentage. The formula is: ((\text{Final Value} - \text{Initial Investment}) / \text{Initial Investment} \times 100). This provides a clear view of the investment's performance without comparing it to a benchmark or index.