Actual Return

Actual Return

The actual gain or loss of an investor. This can be expressed in the following formula: expected return (ex-ante) plus the effect of firm-specific and economy-wide news.

Notes:

As opposed to expected return, actual return is what investors actually receive from their investment. The discrepancy between actual and expected return is due to systematic and unsystematic risk.

See also: Abnormal Return, Ex-ante, Expected Return, Ex-post, Systematic, Unsystematic