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Glossary Term: VALUE ADDED

Definition(s) for VALUE ADDED:


1. ) Value added is the risk adjusted return generated by an investment strategy: the return of the investment strategy minus the return of the benchmark.

2. ) The gross output of an industry or a sector less its intermediate inputs; the contribution of an industry or sector to gross domestic product (GDP). Value added by industry can also be measured as the sum of compensation of employees, taxes on production and imports less subsidies, and gross operating surplus.

3. ) Contribution of primary inputs (mainly labor and capital) to total output.



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