What it does: Calculates the overall return on an investment, considering both capital appreciation and dividends.

How it works: Adds the increase in value of the investment and the dividends received, then calculates the percentage return.

Calculation: (Final Value - Initial Value + Dividends) / Initial Value

Usage: Fundamental for measuring the performance of a portfolio.

Formula: Total Return = (Final Value - Initial Value + Dividends) / Initial Value