All You Need To Know About Returns

Guenter Bauer
Investor’s Handbook
9 min readAug 31, 2021

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Photo by Scott Graham on Unsplash

Calculating returns of stocks is important, if an investors wants to know how much he earned or for comparing different assets in terms of profitability. Although this sounds like a straightforward topic, there are some pitfalls, that you should be aware of. Otherwise you might make unconsciously false conclusions. Generally, two types of returns are distinguished, which are

  • arithmetic returns

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Guenter Bauer
Investor’s Handbook

Writing about Python & Finance and the combination of both.