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 ?
TRUNCATION HYPOTHESIS: Imposing a minimum return rule bounds the lower tail of the possible return rate distribution and leaves higher return rates otherwise unaffected.
Board member Steve Buckley, of the Portland law firm Brownstein Rask, said keeping the 7.5 return rate "could have an adverse impact on (the PERS) annual financial audit."
To get more benefits, both the manufacturer and the retailer invest the store-assistance service level to reduce the return rate. Generally speaking, from the perspective of physical store, the aim of the store-assistance service investments is to ensure that the consumer finds the right products, which is mainly reflected by providing bigger space to display the full assortments/styles of products, installing special equipment to enhance the trial experience, and hiring highly qualified salespeople or training the existing ones to improve their sale experiences [8].
At the same time, it can be found that under no circumstances is the return rate of RSI lower than that of OBV.
The American Funds Mutual Fund Family $1.25 trillion in total assets as of June 30, according to Morningstar data, with a trailing return rate of 2.58% year-to date.
The increases in return rates were statistically significant, said Ms.
In 2010 the number of items reported lost soared to 27,705 cases, with a return rate of 15 per cent.
According to the Michigan Department of Treasury, the state's return rate is extremely high, even surpassing 100% in the 1990s, meaning residents from neighboring states were obviously crossing the border to take advantage of the high payout for the cans and bottles.
In the past, the return rate for postgraduate surveys has been only 3 to 5 percent.
On the basis of CPI, real profit rate of gold was 3.02% and return rate of US dollar was 1.75% in September.
It is impossible to combine maximization of profits with minimal level of risk, as securities which promise potentially high return rate are also burdened with high risk.
The figures show the North East is way ahead of London, whose return rate currently stands at 60%.