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:

Executive Branch

The branch of government responsible for implementing and enforcing laws, typically headed by a president or prime minister.

Legislative Branch

The branch of government responsible for creating, amending, and repealing laws.

Judicial Branch

The branch of government responsible for interpreting the law and administering justice through courts and other judicial institutions.

Administrative Branch

That part of government responsible for the execution and enforcement of laws and policies, traditionally comprising departments and agencies.