Many investors focus on how a stock's price changes over time, but that doesn't tell the entire story. Calculating total return is a valuable tool.

Calculate annual return: Adjust purchase price for splits, then annualize simple return. Dividends can be included by using dividend-adjusted prices in return calculations.

Knowing how to calculate your portfolio's returns is essential to becoming a savvier investor. Learn the basic principles ...

The total return of a stock going from $10 to $20 and paying $1 in dividends is 110%. It may seem simple at first glance, but total returns are one of the most important financial metrics around.

Beta measures a stock’s volatility compared to the overall market. A beta above 1 means the stock is more volatile, while a beta below 1 means it is less volatile. Calculating beta involves ...

One simple but powerful method investors can use to assess the risk and reward of a stock portfolio is using the Capital Asset Pricing Model, or CAPM, model for expected returns.

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How to Calculate the Value of Preferred Stock Calculating the value of preferred stock involves taking into account fixed dividend payments and the required rate of return.

How not to calculate an annual return You can't simply divide your simple return by the number of years held because of the compounding power of money. We can use a dramatic example to illustrate why.

Annual return can be a preferable metric to use over simple return when you want to evaluate how successful an investment has been, or to compare the returns of two investments you've held over ...