Rate of return and Re: Difference between pages

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The investor's return on an investment, expressed as a proportion of the amount invested.
''Corporate finance.''


Most commonly expressed as a percentage.
In the corporate finance context, ''Re'' is an abbreviation for Return on equity.
 
 
<span style="color:#4B0082">'''Example'''</span>
 
GBP 1 million is invested.
 
GBP 1.03 million is repayable at the end of the period.
 
 
The rate of return per period (r) is:
 
r = (End amount / Start amount) - 1
 
 
''Which can also be expressed as:''
 
r = (End / Start) - 1
 
= (1.03 / 1.00) - 1
 
= 0.0300
 
= '''3.00%''' per period
 
 
=== Basis of quoting rates of return ===
 
The rate of return in the example above has been calculated and stated on a [[periodic]] basis.
 
Rates of return are often also quoted on an annual basis, following the convention for the market in which the proposed deal is being negotiated.




== See also ==
== See also ==
* [[Conventional year]]
* [[Capital asset pricing model]]
* [[Cost of capital]]
* [[Return on equity]]
* [[Effective annual rate]]
* [[Expected rate of return]]
* [[Nominal annual rate]]
* [[Periodic]]
* [[Periodic rate]]
* [[Real return]]
* [[Return]]
* [[Yield]]


[[Category:Corporate_finance]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Financial_products_and_markets]]

Latest revision as of 13:37, 19 July 2019

Corporate finance.

In the corporate finance context, Re is an abbreviation for Return on equity.


See also