answersLogoWhite

0

In finance what is rate of return?

Updated: 4/28/2022
User Avatar

Wiki User

9y ago

Best Answer

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.

User Avatar

Wiki User

9y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: In finance what is rate of return?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Effect of interest rate on consumer finance?

Effect of interest rate on consumer finance?


Return a finance car to the lender?

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


What has the author Elroy Dimson written?

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


How is expected rate of return calculated from average rate of return on investment and standard deviation?

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.


Are interest rate and rate of return the same?

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


Does the capital asset pricing model help us to get required rate of return or expected rate of return?

expected rate of return


What has the author John R Graham written?

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


What is business finance?

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.


How can you have a negative real rate of return over the same period?

If the rate of inflation exceeds the nominal rate of return during the period in question, then the real rate of return can be negative.


What is the full form of ROI in finance?

return on interest


How would you describe a rate of return?

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


What is formula for average 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