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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

rate of return

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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%.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

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.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

rate of return

The ratio between the earnings and the cost of an investment.
The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
A new garage door will run approximately $2,000 and you can look forward to a 77 percent return."
These assets yielded a 1.37 percent return in the business year through March, including dividends.
Under the terms of its $10.9 billion restructuring proposal, trade creditors will receive 40 percent in cash and 60 percent repayment through an Islamic bond with a 10 percent return.
Coming in at the bottom among grocers were Vons, with a wait time of 4:15 and a return ratio of 82.76 percent; Food 4 Less, with a 5:13 wait time and a 100.00 percent return ration; and A&P, with a 7:23 wait time and a 57.14 percent return ratio, MSPA said.
Traditionally, buyers seek a 10 percent return on the new property.
He is also currently leading in a stock-picking contest of CBC.ca, where his portfolio has posted a 19.6 percent return as of September 14.
The report lists public real estate as the second-best asset class, behind natural resources, for smaller endowments, which reported a 27 percent return on public real estate investments.
If a Fortune 100 company's profits are roughly $5 billion a year, and the company makes $500,000 in political contributions in a two-year election cycle (an amount few donors ever reach), and if the firm further receives a 100 percent return on those soft money contributions, the profit would amount to about 0.01 percent of the corporation's two-year profit.
Among REIT property sectors, retail is, so far, the number-three performer for 2005, logging a 4.24 percent return for the year to date as of May 31, according to the National Association of Real Estate Investment Trusts.
Lauren DellaCava, field trial administrator for the project at Lankenau Hospital outside Philadelphia, was struck by the 60 to 70 percent return rate among those asked to observe and turn in surveys.