1. Cumulative rate of return refers to the cumulative income of the fund since its establishment and operation, including cash dividend income and income from changes in the net value of the fund, which can measure the income of the fund since its establishment.

2. Fund return rate: The most important indicator to measure the fund return rate is the fund investment return rate, that is, the ratio of the actual return of fund securities investment to the investment cost. The higher the return on investment, the stronger the profitability of fund securities. If the subscription and redemption of fund securities need to pay a handling fee, the handling fee factor should be considered in the calculation.

(Introduction to knowledge about cumulative rate of return):

Cumulative excess returns are the simple sum of the monthly excess returns of each stock during its formation period.

Calculation method:

1: convert the company's share price and market index into daily rate of return (or rate of return);

Daily stock yield = (today's price-the previous day's price)/the previous day's price

Daily index yield = (index of the day-index of the previous day)/index of the previous day.

Calculate the excess rate of return (AR)

Excess return = daily stock return-daily index return

The cumulative rate of return is the increase of the closing price of the stock in this range.

2. Calculation of excess rate of return We use the data of parameter estimation period to estimate the normal rate of return:

Select the market model here, which is expressed as:

Rit = αi + βiRim + εit

Among them, Rit is the actual rate of return of stock I in T period; Rim is the yield of t-period market; ε It is a random perturbation term.

Regression of the above formula with the least square estimation method, estimation of αi and βi with the data of parameter estimation period, and assuming that αi and βi remain unchanged during the event period, we can get the excess return rate and cumulative excess return rate during the event period:

ARit = Rit？ αi？ βiRim

Among them, ARit is the calculated excess return of stock I in event period T, Rit is the actual return of stock I in event period T, Rim is the celestial circulation index (market return rate) of event period T, αi and βi are the parameter values estimated by market model, CARit is the cumulative excess return of stock I in event period T, AARt is the average excess return of event period T, and CARt is the cumulative average excess return of event period T. ..

Reference link: Baidu Encyclopedia: Cumulative excess rate of return