NSIA and Rate of return: Difference between pages

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''Sanctions - national security - secured financing - UK.''
The investor's return on an investment, expressed as a proportion of the amount invested.


The UK's National Security and Investments Act 2021.
Most commonly expressed as a percentage.




==See also==
<span style="color:#4B0082">'''Example'''</span>
* [[Loan Market Association]]  (LMA)
* [[National security]]
* [[National Security and Investments Act 2021]]
* [[Sanctions]]
* [[Secured]]
* [[Security]]


[[Category:Accounting,_tax_and_regulation]]
GBP 1 million is invested.
[[Category:The_business_context]]
 
[[Category:Identify_and_assess_risks]]
GBP 1.03 million is repayable at the end of the period.
[[Category:Manage_risks]]
 
[[Category:Risk_frameworks]]
 
[[Category:Risk_reporting]]
The rate of return per period (r) is:
[[Category:Cash_management]]
 
[[Category:Financial_products_and_markets]]
r = (End amount / Start amount) - 1
[[Category:Liquidity_management]]
 
 
''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%''' 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 deal is being negotiated.
 
 
== See also ==
* [[Conventional year]]
* [[Effective annual rate]]
* [[Nominal annual rate]]
* [[Periodic]]
* [[Periodic rate]]
* [[Real return]]
* [[Return]]
* [[Yield]]
 
[[Category:Corporate_finance]]

Revision as of 17:07, 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 rate of return per period (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% 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 deal is being negotiated.


See also