Question

What is meant by First return and annual return

Answer 1

The annual return is the return that an investment provides over a period of time, expressed as a time-weighted annual percentage

Answer 2

Explanation:

What Is an Annual Return?

The annual return is the return that an investment provides over a period of time, expressed as a time-weighted annual percentage. Sources of returns can include dividends, returns of capital and capital appreciation. The rate of annual return is measured against the initial amount of the investment and represents a geometric mean rather than a simple arithmetic mean.

What Is a First Return?

First return refers to a tax return for the first year of tax, including a timely amended return for that year.

The phrase "first return" means a return for the first year in which the taxpayer exercises the privilege of fixing its capital stock value for tax purposes. [Haggar Co. v. Helvering, 308 U.S. 389 (U.S. 1940)