Return: Difference between revisions

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imported>Doug Williamson
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imported>Doug Williamson
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The surplus of the amount received back from an investment, over the initial amount invested.
The surplus of the amount received back from an investment, over the initial amount invested. To facilitate comparisons, return is usually expressed as a percentage of the initial amount invested, most commonly as an effective annual rate of return.


To facilitate comparisons, return is usually expressed as a percentage of the initial amount invested, most commonly as an effective annual rate of return.
When expressed on this basis, return is also known as 'yield'.


Returns can be negative.
Returns can be negative. Negative returns mean that the amounts received back from an investment are less than the amounts initially invested.
 
Negative returns mean that the amounts received back from an investment are less than the amounts initially invested.




== See also ==
== See also ==
* [[Effective annual rate]]
*[[Effective annual rate]]
* [[Holding period return]]
*[[Holding period return]]
* [[Performance spread]]
*[[Performance spread]]
* [[Portfolio investment]]
*[[Portfolio investment]]
* [[Rate of return]]
*[[Rate of return]]
* [[Rewarded risk]]
*[[Rewarded risk]]
* [[Risk]]
*[[Risk]]
* [[Total return]]
*[[Total return]]
*[[Yield]]


[[Category:Investment_Appraisal]]
[[Category:Corporate_finance]]

Revision as of 10:37, 30 May 2015

The surplus of the amount received back from an investment, over the initial amount invested. To facilitate comparisons, return is usually expressed as a percentage of the initial amount invested, most commonly as an effective annual rate of return.

When expressed on this basis, return is also known as 'yield'.

Returns can be negative. Negative returns mean that the amounts received back from an investment are less than the amounts initially invested.


See also