# annual rate of return

- There are many ways of calculating the annual rate of return. If the rate of return is calculated on a monthly basis, we sometimes multiply this by 12 to express an annual rate of return. This is often called the annual percentage rate ( APR). The annual percentage yield ( APY) includes the effect of compounding interest.
__Bloomberg Financial Dictionary__

*Financial and business terms.
2012.*

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**compounded annual rate of return**— UK US noun [C] (also compound annual rate of return) ► ECONOMICS, FINANCE the amount of compound interest paid on a sum of money over a 12 month period … Financial and business terms**compound annual rate of return**— ˌcompound ˌannual ˌrate of reˈturn noun [countable] FINANCE the amount of compound interest paid or earned on a sum of money in twelve months … Financial and business terms**Rate of return**— 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.… … Wikipedia**rate of return**— Fin an accounting ratio of the income from an investment to the amount of the investment, used to measure financial performance. EXAMPLE There is a basic formula that will serve most needs, at least initially: [(Current value of amount invested – … The ultimate business dictionary**rate of return**— 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 * * … Financial and business terms**Rate of return pricing**— Target rate of return pricing is a pricing method used almost exclusively by market leaders or monopolists. You start with a rate of return objective, like 5% of invested capital, or 10% of sales revenue. Then you arrange your price structure so… … Wikipedia**rate of return**— The annual income earned from the investment of resources in a commercial or economic activity, usually expressed as a percentage of the original investment. In a discounted cash flow appraisal, for example, the rate of return may be expressed as … Accounting dictionary**rate of return**— The annual amount of income from an investment, expressed as a percentage of the original investment. This rate is very important in assessing the relative merits of different investments. It is therefore important to note whether a quoted rate… … Big dictionary of business and management**Internal rate of return**— The internal rate of return (IRR) is a capital budgeting metric used by firms to decide whether they should make investments. It is an indicator of the efficiency or quality of an investment, as opposed to net present value (NPV), which indicates … Wikipedia**internal rate of return**— (IRR) A compound rate of interest worked out over the life of a private equity fund reflecting both the investment return and the rate at which the return is produced. The IRR is calculated by way of an iterative mathematical formula which values … Law dictionary