Return

The surplus of the amount received back from an investment, compared with the initial amount invested.

To facilitate comparisons, return is usually expressed as a percentage of the initial amount invested, often as an effective annual rate of return.

When expressed on this basis, the rate of 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

• Effective annual rate
• Holding period return
• Performance spread
• Portfolio investment
• Rate of return
• Rewarded risk
• Risk
• Total return
• Yield