Actual Return

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Actual Return

The return or yield on an investment or portfolio, as opposed to an estimation of the same. Before making an investment, one generally calculates the expected return, which is an important aspect of an investment's risk analysis. The actual return is what objectively happened to the investment. In addition to contributing to an investor's profit or loss on a given deal, the actual return may be measured against the expected return to determine the accuracy of risk analysis methodologies.
References in periodicals archive ?
Currently, the Commission has concerns that the actual rate of return could be higher than estimated and could lead to overcompensation.
Changing from a 30-year crediting rate to actual rate of return has worked for a lot of our clients to minimize risk," he says.
In response to "Wind and Solar Costs Can Compete" (Green Gazette, April/May 2015); What is the actual carbon footprint and the actual rate of return on a solar power system?
The IRS now allows the ICR to be equal to the plan's actual rate of return, as long as the plan's investments are adequately diversified; therefore, the value of the plan's assets is always equal to its account balances.
However, if the ICR is set to equal the Actual Rate of Return, the "preservation of capital rule" will apply, which is meant to protect the employees' assets in the plan.
How could this actual rate of return be so much lower than what their agent, who on his web site touts "his sophisticated mathematical and financial knowledge," had explained, or that Mary (no dummy herself) had calculated?
The systems covered by the NASRA research assume an 8 percent average rate of return over a 25-year period, and in fact, the actual rate of return over the last 25 years has been 9.
The internal rate of return of the project is the borrowing rate that the project could just afford to pay, or one could say that it is the actual rate of return on the project.
The actual rate of return on PHBs is defined as the ratio of taxable income to the total assets in PHBs.
These low rates facilitate use of certain estate planning techniques that exploit the difference between the assumed rate of return on an investment under transfer tax law and the actual rate of return that can be achieved for the investment.
Contributions made since 1999 are capitalised at the actual rate of return achieved.
5% per annum, but the actual rate of return has been about 3% since fiscal 1995 due to falling interest rates and a bear stock market.