Broker-dealer and Rate of return: Difference between pages
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imported>Doug Williamson (Updated.) |
imported>Doug Williamson (changed Periodic to per period) |
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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 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%''' | |||
== See also == | == See also == | ||
* [[ | * [[Periodic]] | ||
* [[ | * [[Periodic rate]] | ||
* [[ | * [[Real return]] | ||
* [[ | * [[Return]] | ||
* [[ | * [[Yield]] | ||
[[Category:Corporate_finance]] | |||
Revision as of 16:51, 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%
