Financial return ($R=(V_1-V_0+D)/V_0$)

For initial asset value $V_0>0$, final value $V_1$, and intervening cash distribution $D$, the net financial return is $(V_1-V_0+D)/V_0$. Its gross return is $1+R=(V_1+D)/V_0$. In a one-period portfolio with initial-value weights $w_i$ summing to one, the net return is ${\sum }_i{w}_i{R}_i$. The expected return is its expected value; a realized return need not equal it.