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Annual Return |
Also found in: Acronyms | 0.01 sec. |
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Annual Return The revenue an investment generates over a year as a percentage of the amount of capital invested. The annual return shows the number of years it will take to recover one's investment. For example, if one invests $1,000 and receives $150 in the first year of the investment, the rate of return is 15%, and the investor will recover his/her initial $1,000 in six years and eight months. Investors vary their required rates of return for different levels of risk. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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