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How to calculate the rate of return
Rate of return is a concept used to measure the profitability or rate of return of an investment or asset. The calculation method of the rate of return depends on the specific situation and the data involved. The following are several common methods to calculate the rate of return:

Simple return: Simple return is the most basic calculation method, which is calculated by comparing the difference between initial investment and final investment. The formula is as follows:

Simple rate of return = (final investment value-initial investment value)/initial investment value * 100%

Annualized return: Annualized return is used to convert investment return into annual return for better comparison. You can use the following formula to calculate:

Annualized rate of return =( 1+ simple rate of return) (1/ investment period)-1

Compound Annual Growth Rate (CAGR): CAGR is an indicator that considers multiple time periods and represents the overall growth rate of investment in these time periods. You can use the following formula to calculate:

Compound annualized rate of return = (final investment value/initial investment value) (1/ investment years)-1

Dividend rate: dividend rate is a special rate of return on stock investment, which is used to measure the rate of return on stock dividends. The calculation formula is as follows:

Dividend yield = (dividend per share/share price) * 100%

It should be noted that the calculation of the rate of return may involve different time periods, expenses, bonuses and other factors, so it is necessary to choose a suitable calculation method according to the actual situation in specific applications, and pay attention to the sources and definitions of various data. In addition, specific investment tools or fields may have their own unique rate of return calculation methods, please study and understand according to the specific situation.