Return: Difference between revisions
imported>Doug Williamson (Add headings.) |
imported>Doug Williamson (Expand 2nd definition.) |
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2. ''Investment appraisal.'' | 2. ''Investment appraisal.'' | ||
Return can also mean the total amount received back at the end of investment period, including the initial amount invested. | Return can sometimes also mean the total amount received back at the end of investment period, including the initial amount invested. | ||
Here as elsewhere, transparency and consistency of definitions are essential. | |||
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== See also == | == See also == | ||
*[[Effective annual rate]] | *[[Effective annual rate]] | ||
*[[Financial risk]] | |||
*[[Holding period return]] | *[[Holding period return]] | ||
*[[Investment appraisal]] | *[[Investment appraisal]] | ||
Revision as of 13:08, 4 August 2019
1. Investment appraisal.
Return is 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.
2. Investment appraisal.
Return can sometimes also mean the total amount received back at the end of investment period, including the initial amount invested.
Here as elsewhere, transparency and consistency of definitions are essential.
3. Reporting.
A return is also a regular and standard-formatted report.
For example, a tax return made to a tax authority.
