What is Returns in financial modelling?

In financial modeling, "returns" refer to the gains or losses generated from an investment over a specific period, typically expressed as a percentage of the initial investment. Returns can be classified as realized (actual profits or losses) or unrealized (potential gains or losses based on current market value). They are crucial for evaluating the performance of investments and comparing different assets or portfoliOS. Understanding returns helps investors make informed decisions about risk and expected performance.