When calculating the total return on an investment, which of the following would NOT generally be included?

Total return on an investment refers to the overall gain or loss made on an investment over a specified period, typically expressed as a percentage of the initial investment. To calculate total return, you generally include three components: dividends received, appreciation in stock price, and any costs directly associated with the investment, such as commission fees.

Dividends received contribute directly to the cash flow from the investment. Appreciation in stock price reflects the capital gains achieved as the value of the investment increases. Commission fees, while they reduce the overall profitability, are included in the return calculation as they represent the cost of acquiring or selling the investment.

Losses from other investments, however, do not factor into the total return of a specific investment. Each investment is evaluated independently for its performance, and while it’s essential to consider the overall performance of an investment portfolio, the return of one particular investment shouldn’t include the losses of another. This keeps the analysis straightforward and focused on the performance of the individual investment being assessed.