rate of return

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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 ?
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.
Species/Parameter 2002 2003 2004 Baltimore Oriole Newly arrived 14 9 8 Returned NA 6 5 Did not return NA 8 10 Total present 14 15 13 Return rate, % NA 43 (6/14) 33 (5/15) Orchard Oriole Newly arrived 16 27 15 Returned NA 4 9n Did not return NA 12 23h Total present 16 31 24 Return rate, % NA 25 (4/16) 29 (9/31) Species/Parameter 2005 Average Baltimore Oriole Newly arrived 22 Returned 5 Did not return 8 Total present 27 (a) Return rate, % 38 (5/13) 38 (16/42) Orchard Oriole Newly arrived 20 Returned 12 (b) Did not return 15 (b) Total present 32 (a) Return rate, % 50(12/24) 35 (25/71) (a) Increased sample size due to intensive work at the Monocacy field site.
Twenty-one NLC direct member cities in Ohio topped a return rate of 70 percent, led by Highland Heights at 78 percent and Brook Park at 77 percent.
Marginal inconvenience cost curves are critical in determining the optimal return value for achieving a given return rate.
It was recognized from the outset that this strategy would significantly affect return rates from the readership of these newsletters, yet project budgetary constraints prohibited the use of return envelopes with such a volume of mailouts.
For a lender currently seeing a 15% NSF return rate in their ACH debit transactions, the return rate could fall to 7-8%.
Relatively few studies have focused on nest-site fidelity in grassland birds, and even fewer have examined return rates (marked individuals returning to previous nest sites) of grassland birds on reclaimed surface mines.
Simply using a mean-variance optimization model to design the asset mix and applying it consistently to all the portfolio components precludes the investor from maximizing the return rate on a risk-adjusted basis.
Cordless phones' high return rate is partly the result of unrealistic consumer expectations, according to several industry executives.
At a time when many small businesses are struggling, the privately-held ExpressWay shows a near 80 percent customer return rate and consistent growth.
After using a variety of questionnaires, we find our highest return rate comes when questions are limited to a single page.
Coupons yield less than a one percent return rate and other marketing tactics provide similar results.