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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.

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2w ago

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