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Compound Return
The rate of return on an investment over a specified period, taking into account the effect of compounding, where the investment's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time.
Geometric Average
A method of calculating the average rate of return of a set of values by multiplying them together and taking the nth root, where n is the number of values.
Efficient Capital Market
A market in which securities' prices fully reflect all available information, making it impossible to consistently achieve higher returns without taking additional risks.
Income Component
Income Component pertains to the portion of a financial product's return that is generated from the payment of interest or dividends.
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