Calculated as the (value now minus value at time of purchase) divided by value at time of purchase. For equities ( equity), we often include dividends with the value now. See also: return, annual rate of return. Bloomberg Financial Dictionary
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The return on an investment. For a company this would be net profits expressed as a percentage of average capital employed.
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rate of return UK US noun [C] (plural rates of return) (ABBREVIATION ROR)
► ACCOUNTING, FINANCE the amount of profit that an investment earns calculated as a percentage of the money that was originally invested: the actual/annual rate of return »
The Fund's actual rate of return may be greater or less than the 5% return shown in the illustration.
»Record crude prices have allowed oil companies to show their strongest rate of return on capital for five years.
earn/generate/offer a rate of return »The endowments offer an average rate of return of around 10%.
»a decent/good/high rate of return
»a fixed/net/real rate of return
»a low/poor rate of return
»a guaranteed/projected/expected rate of return
Financial and business terms. 2012.