There is no assurance that actual rate of return on an asset will be similar to the projected rate of return:- True
An investor's actual gain or loss on an investment or in a portfolio is referred to as their actual return. Additionally known as the internal rate of return (IRR). It may significantly impact net worth.
The actual return is what investors really get in comparison to anticipated or imagined returns. A mutual fund's disclosure statement might, for instance, declare that its shares earn 5% annually, however the real return will probably be different. Understanding the role systematic (market-related) and idiosyncratic (manager- or fund-related) risk variables played in portfolio returns requires an analysis of the causes of the difference between predicted and actual return numbers. Trading fees, manager, and other factors fees, the length of the investment, if any new investments or withdrawals were made over that time, the effects of taxes, and the effects of inflation influence real results.
To learn more about actual rate of return, visit:
https://brainly.com/question/24169726
#SPJ4
