Return Relative | Rate of Return Relative to One Unit

Return Relative

Return Return Relative | Rate of Return

(1) The rate of return stated relative to one unit: (return/100 + 1). For example, a return of 32% has a return relative of 1.32 (32/100 + 1). A return of -6.05 is expressed as.9395 (-6.05/100 + 1). In Russell Performance Attribution (RPA), return relative measures are used to link returns of discrete periods.

(2) The rate of return for a given period stated in terms relative to $1.00. For example, a 5.6% rate of return would have a 1.056 return relative (5.6 divided by 100 + 1 = 1.056). This translates into each invested dollar having grown to $1.06 at the end of the period.

For over 1,000 additional terms and definitions please see our Investment Glossary Guide.

Related to Return Relative:

• Geographical Hedge Fund Guides
• Hedge Fund Employment Guide
• Financial Certification
• Investment Book
• Hedge Fund Terms and Definitions

Tags: Return Relative, relative returns, rate of returns, rate of return, relative rate of return