rate of return

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Related to Return Rates: ROI, Average rate of return

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.

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.

rate of return

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%.

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.

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.

rate of return

The ratio between the earnings and the cost of an investment.
References in periodicals archive ?
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.
However, we should not consider this period as typical one, as the next years (2009-2010) saw the comeback of a good situation on stock exchange and again investment in shares offered the possibility of obtaining the highest return rates from investing in securities.
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.
It reports that the relationship between return rates and vote share varies as vote share increases and as time progresses.
Initial return rates are influenced by many factors other than the speed with which residents complete the surveys.
The 50 per cent off standard return rates offer applies to both a car and 4 adults and foot passengers.
And while a large majority of all plants considers internal reject rates and customer reject or return rates to be important measures of quality performance, "world-class" plants are also highly concerned about less nuts-and-bolts measures, such as on-time delivery rates, maintaining cost standards, and response time to customer inquiries or complaints.
Section two presents a methodology for analyzing the costs to consumers using AB2020 as an application and presents the linkages among inconvenience costs, return values, and return rates.
It was recognized from the outset that this strategy would significantly affect return rates from the readership of these newsletters, yet project budgetary constraints prohibited the use of return envelopes with such a volume of mailouts.
Laru's ACH Clarity reveals, for example, not only the aggregate unauthorized return rates for the TPPP but the individual return rates for the TPPP's customers as well," said Rajiv Donde, Laru CEO.
The Monetary Policy Committee (MPC) at the Central Bank of Egypt (CBE) decided Thursday evening to fix CBE's basic return rates, the CBE announced in a statement.