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 alone should increase mean return rates as rules are imposed and increase.
In line with the definition of stochastic dominance above, it can be found that the [j.sup.th] order (j = 1,2,3] stochastic dominance relation between the risky assets X and Y can be defined through a comparison of j - 1 order integrals of accumulative distribution functions of the return rates on the risky assets X and Y only.
The return rate at 1-6 months after treatment among 1,454 patients who received enhanced educational information about reinfection and the importance of retesting during the first phase of the InTOUCH study was 59%, and the return rate among 575 patients who received that educational information along with customized reminders and / or a mailed-in home testing kit in a second phase was 62%, compared with a return rate of 54% among 2,696 historical controls, Holly Howard reported at a conference on STD prevention sponsored by the Centers for Disease Control and Prevention.
Each year of the study, those with severe mental illnesses had lower return rates than those in the other three groups.
The results of the analysis point at little differences between return rates of the portfolios which differ substantially in their structure of financial instruments.
(16) This barrier has been identified as the most significant challenge to identification of hearing loss in developed countries.17 To overcome it, it has been proposed that aligning follow-up screenings with routine immunisation visits may improve return rates in developing countries, and that more comprehensive coverage could be attained if this approach is adopted.
Fitchburg was one of the few cities in the state whose return rate actually went up from 2000 to 2010: from 69 percent to 71 percent.
The investigators conducted a 1-year retrospective case-control study to evaluate the form's impact on return rates after an ED admission for fever in children aged 8 weeks to 5 years.
Major Finding: Fever-specific discharge instructions are associated with lower 48-hour return rates in children seen for fever in the emergency department
Hence, the problems associated with lack of access to a laboratory and low patient return rates are no longer an issue.
"Confronting high return rates on some sales points and running out of stock in others ...
Dyson said it had the lowest return rates, which are "the real measure of reliability and satisfaction" and "the Dyson DC14 has a reliability rating of 98 per cent".