rate of return

noun [C] (plural rates of return) (abbreviation ROR)

Definition

› ACCOUNTING, FINANCE the amount of profit that an investment earns calculated as a percentage of the money that was originally invested: the actual/annual rate of return The Fund's actual rate of return may be greater or less than the 5% return shown in the illustration. Record crude prices have allowed oil companies to show their strongest rate of return on capital for five years.earn/generate/offer a rate of return The endowments offer an average rate of return of around 10%. a decent/good/high rate of return a fixed/net/real rate of return a low/poor rate of return a guaranteed/projected/expected rate of return

→ See also internal rate of return

(Definition of rate of return noun from the Cambridge Business English Dictionary © Cambridge University Press)

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