Collateral agreement and Rate of return: Difference between pages

Revision as of 15:55, 19 November 2015

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

Most commonly expressed as a percentage.

Example

GBP 1 million is invested.

GBP 1.03 million is repayable at the end of the period.

The periodic rate of return (r) is:

r = (End amount / Start amount) - 1

Which can also be expressed as:

r = (End / Start) - 1

or

r = <math>\frac{End}{Start}</math> - 1

= <math>\frac{1.03}{1}</math> - 1

= 0.0300

= 3.00%

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-A subsidiary agreement, for example an agreement providing additional security for a debt.
+The investor's return on an investment, expressed as a proportion of the amount invested.
+Most commonly expressed as a percentage.
+<span style="color:#4B0082">'''Example'''</span>
+GBP 1 million is invested.
+GBP 1.03 million is repayable at the end of the period.
+The periodic rate of return (r) is:
+r = (End amount / Start amount) - 1
+Which can also be expressed as:
+r = (End / Start) - 1
+''or''
+r = <math>\frac{End}{Start}</math> - 1
+= <math>\frac{1.03}{1}</math> - 1
+= 0.0300
+= '''3.00%'''
 == See also ==
-* [[Security]]
+* [[Periodic]]
-* [[Collateral]]
+* [[Periodic rate]]
+* [[Real return]]
+* [[Return]]
+* [[Yield]]
-[[Category:Treasury_operations_infrastructure]]
+[[Category:Corporate_finance]]