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Glossary Term: ANNUALIZED RETURN

Definition(s) for ANNUALIZED RETURN:


1. ) refers to a method of calculating the return on an investment of more than one year. The annualized or average annual return is derived by adding each year's return on investment and dividing that number by the number of years invested. The return takes into account the reinvestment of dividends (and distributed capital gains for mutual funds) as well as the change in the price of the investment over time.



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