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RETURNS

Simple Return

Measures percentage gain or loss relative to starting capital.

Formula

R = (P1-P0+Income)/P0

Variables: P0 initial value; P1 ending value; Income

What it means

Measures percentage gain or loss relative to starting capital.

Example

A move from 100 to 103 with no income is a 3% simple return.

How to interpret it

This concept should be read together with its market convention, measurement horizon and underlying instrument. BondStats presents it as an analytical reference rather than investment advice; instrument documentation and primary market rules remain authoritative.

BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.