# In finance what is rate of return?

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###### Answered 2014-06-27 21:33:18

In finance, the rate of return is a profit from an investment whereas the set rate determines the profit. For example, if an investor receives 10% for every \$100 invested then the rate of return would be \$10.00.

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## Related Questions

In finance, the term refers as the rate of return on security.Tax yield, is the product of the tax rate and tax base

My car was crashed and I lost my job. How do I return the finance car to the lender?

The expected rate of return is simply the average rate of return. The standard deviation does not directly affect the expected rate of return, only the reliability of that estimate.

Yes, the interest rate and rate of return are exactly the same.

Elroy Dimson has written: 'Millenium book' 'Cases in corporate finance' -- subject(s): Case studies, Corporations, Finance 'The millennium book' -- subject(s): History, Investments, Rate of return

An investment's rate of return is expressed as a percentage.

Finance is the science of funds management, or the allocation of assets and liabilities over time under conditions of certainty and uncertainty. A key point in finance is the time value of money, which states that a unit of currency today is worth more than the same unit of currency tomorrow. Finance aims to price assets based on their risk level, and expected rate of return. Finance can be broken into three different sub categories: Public finance, corporate finance and personal finance.

Expected return= risk free rate + Risk premium = 11 rate of return on stock= Riskfree rate + beta x( expected market return- risk free rate)

John R Graham has written: 'Expectations of equity risk premia, volatility and asymmetry from a corporate finance perspective' -- subject(s): Risk management, Rate of return, Capital investments, Corporations, Finance

Just as getting more money produces a higher rate of return, getting the money sooner also produces a higher rate of return.

Where Equals __RAverage rate of return Rt Return at time t TNumber of time points Where Equals u Average rate of return Ri i-th return n Number of observations Where Equals __RAverage rate of return Rt Return at time t TNumber of time points Where Equals u Average rate of return Ri i-th return n Number of observations

Auto finance interest rates vary, but the current interest rate is generally between six and nine percent.

In finance, rate of return (ROR), also known as return on investment (ROI), rate of profit or sometimes just return, is the ratio of money gained or lost (whether realized or unrealized) on an investment relative to the amount of money invested. The amount of money gained or lost may be referred to as interest, profit/loss, gain/loss, or net income/loss. The money invested may be referred to as the asset, capital, principal, or the cost basis of the investment. ROI is usually expressed as a percentage. There are two ways to measure the rate of return on an investment.1-Average annual rate of return (also known as average annual arithmetic return)2-Compound rate of return (also called average annual geometric return)Let's say you invest \$100 in stock, which is called your capital. One year later, your investment yields \$110. What is the rate of return of your investment? We calculate it by using the following formula:((Return - Capital) / Capital) &Atilde;&mdash; 100% = Rate of ReturnTherefore,((\$110 - \$100) / \$100) &Atilde;&mdash; 100% = 10%Your rate of return is 10%.

Yes, you can return a used car to the finance company in Canada. However, you also can consider returning it to the dealer you bought it from as well.

Have the car voluntarily repossessed. Using this option means that you voluntarily return the car to the finance loan company if you are too far behind on your payments and can't recover. If you decide to return the car, the finance company may pick up the vehicle or it may require that you return the car to its location.

An increase in a firm's expected growth rate would normally cause its required rate of return to

Internal rate of return (IRR) is a discounted method used for Capital budgeting decisions (investment etc) while accounting rate of retun is a measure for calculating return for a one off payment. IRR is actually the discount rate that equates the Present value of the cash flows to the NPV of the project (investment) while accounting rate of return just gives the actual rate of return. Habib topu1910@gmail.com

What factors affect the rate of return of an investment at maturity?

The accounting rate of return stockholders investments is measured by?

The minimum Required Rate of Return should be calculated by looking at the rate of return that would be gained by putting money in a savings accounts that accrues interest at the current rate. If you investment is not projected to make more profit than that it does not meet the minimum Required Rate of Return.

The nominal annual rate of return is calculated from the effective interest rate. It is typically a slightly lower percentage, and gives investors an idea of what their investment may return.

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