👉 The term "cumulative" is a mathematical concept used in statistics and finance. It refers to the process of calculating or tracking the total amount of an asset over a specific period, such as one year or a decade, without considering changes in value at any point during that time. Cumulative returns are calculated by adding together all the individual returns for each period and then dividing by the number of periods. This approach is often used to measure the performance of investments over time.
