Types of Return

How to measure returns correctly – and why many beginners compare the wrong numbers „Return“ sounds simple — but there are different types of returns, and they don’t mean the same thing. Those who misunderstand returns make wrong decisions. Those who understand returns correctly recognize true performance. This deep dive explains the most important types of returns simply, concretely, and without jargon. 🔍 Why there are different types of returns Because returns measure different things depending on the context: How much money did I earn How much did my wealth grow How well did my investment perform compared to others How much purchasing power did I gain or lose 👉 Return is not just a number — it’s a perspective. 🧱 The 5 most important types of returns for beginners 1. 📈 Absolute return How much percentage you gained or lost in total. Formula: Absolute return=End value−Start&n …