Rate Of Return

What Does Rate Of Return Mean?
The gain or loss on an investment over a specified period, expressed as a percentage increase over the initial investment cost. Gains on investments are considered to be any income received from the security plus realized capital gains.

Investopedia explains Rate Of Return
A rate of return measurement can be used to measure virtually any investment vehicle, from real estate to bonds and stocks to fine art, provided the asset is purchased at one point in time and then produces cash flow at some time in the future. Financial securities are commonly judged based on their past rates of return, which can be compared against assets of the same type to determine which investments are the most attractive.

Related Terms

Abnormal Return
Actual Return
Break Issue
Dividend Adjusted Return
Expected Return
Inflation-Adjusted Return
Mean Return
On Stream
Real Rate of Return
Return
More Related Terms

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