rate of return

(redirected from Return Rate)
Also found in: Dictionary, Thesaurus, Encyclopedia.
Related to Return Rate: Average rate of return

Rate of return

Calculated as the (value now minus value at time of purchase) divided by value at time of purchase. For equities, we often include dividends with the value now. See also: Return, annual rate of return.

Rate of Return

In securities, the amount of revenue an investment generates over a given period of time as a percentage of the amount of capital invested. The rate of return shows the amount of time 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. Different investors have different required rates of return at different levels of risk.

rate of return

Rate of return.

Rate of return is income you collect on an investment expressed as a percentage of the investment's purchase price. With a common stock, the rate of return is dividend yield, or your annual dividend divided by the price you paid for the stock.

However, the term is also used to mean percentage return, which is a stock's total return -- dividend plus change in value -- divided by the investment amount.

With a bond, rate of return is the current yield, or your annual interest income divided by the price you paid for the bond. For example, if you paid $900 for a bond with a par value of $1,000 that pays 6% interest, your rate of return is $60 divided by $900, or 6.67%.

rate of return

the PROFITS earned by a business, measured as a percentage of the ASSETS employed in the business. See RETURN ON CAPITAL EMPLOYED.

rate of return

the PROFITS earned by a business, measured as a percentage of the ASSETS employed in the business. See NORMAL PROFIT, ABOVE-NORMAL PROFIT, RATE OF RETURN REGULATION, RETURN ON CAPITAL EMPLOYED.

rate of return

The ratio between the earnings and the cost of an investment.
References in periodicals archive ?
5 return rate "could have an adverse impact on (the PERS) annual financial audit.
It can be known from the descriptive statistics and analysis above that Stochastic Oscillator has the highest average return rate, followed by Bollinger Bands and RSI, and OBV has the relatively poor performance.
The current findings suggest that addressing the factors that contribute to low return rates, including lack of information about the importance of returning, forgetting to return, and difficulties getting to the clinic, can lead to significant improvement in return rates, Ms.
In an earlier study, when education was provided to Missouri parents (in the form of brochures) nurses and doctors reported an improvement in the follow-up return rate over a 3-year period despite not achieving the 70% benchmark for individual screening programmes in Missouri during that period.
posted a return rate for fixed-income portfolio management of 83 percent, according to Pensions and Investments magazine's Piper Managed Domestic Intermediate Duration Managed Fixed Income ranking.
The die has been operating at a scrap rate of less than 3% and a casting return rate of 0.
However, these authors also found that economic variables had higher levels of significance in the presidential party return rate equation than in the presidential party incumbent vote share equation.
The return rate on beverage containers sold in Nova Scotia is nearly 80%, with 215 million containers returned annually.
Recall rates for 1996 and 1997, the most recent data available, show an 18% return rate and a 16% return rate, respectively, for those two years.
Among the numbers to count in addition to purchases: number of visitors, frequency of particular visitors, abandonment rates, time on the site and return rate.
The General Accounting Office, Congress' non-partisan investigative arm, says the 55 percent return rate reported by Census Day, April 1, "is consistent with the Bureau's expectations for this date.