annual return(redirected from Annual Returns)
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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.