Investors shouldn't count capital gains as part of total returns until the security is sold, since the capital gain is really only a "paper gain" up to that point.

Question

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Total returns for an investment include both realized gains (from securities that have been sold) and unrealized gains (or "paper gains" from securities that have not been sold yet), as both contribute to the overall performance of the investment.

Investors Shouldn't Count Capital Gains as Part of Total Returns