What Is the Major Drawback of the Total Return Measure

question 14

Essay

What is the major drawback of the total return measure? Why is it the most common return calculation used by investors?

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Definitions:

Primary Labor Market

Is composed mainly of highly skilled or well-educated white males. They are employed in large corporations that enjoy high levels of capital investment. In the primary labor market, employment is secure, earnings are high, and fringe benefits are generous.

Highly Skilled

Possessing advanced levels of expertise, training, or education in a specific field or activity.

White Males

A demographic group identified by race (white) and gender (male), often discussed in contexts of privilege and social dynamics.

Nonagricultural Workers

Individuals employed in sectors other than agriculture, such as manufacturing, services, or technology.