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Average rate of return

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Average Rate of Return
Arithmetic average of a portfolio's returns over a specific period of time or set of observations.
In Russell Style Classification (RSC), average rate of return is calculated as follows: ...

 


Average Rate Of Return
Average Rate Of Return definition :
The ratio of the average cash inflow to the amount invested.
FTSE 100, S&P 500 All In One ...

Average rate of return (ARR)
The ratio of the average cash inflow to the amount invested.
Related Terms: ...

Average rate of return
Definition: The average rate of return is a method of investment appraisal that measures the net return from the investment as a percentage of the initial cost of the investment.

AVERAGE RATE OF RETURN - the return on an investment calculated by totaling the cash flow over the year...
AVERAGE RATE OF RETURN (ARR) - The ratio of the average cash inflow to the amount invested.

Average rate of return (ARR):
The ratio of average net earnings to average investment.
Français: Taux moyen de rentabilité
Español: Tasa de rentabilidad media ...

Average rate of return (ARR) - A method of investment appraisal which measures the net return per annum as a percentage of the initial spending.

Expost average rate of return
The historical mean percentage an asset has yielded.
Exposure netting ...

average rate of return
effective rate
nominal yield
pretax rate of return
effective (interest) rate
pretax rate of return ...

See: Average rate of return
AS
The two-character ISO 3166 country code for AMERICAN SAMOA.
ASE ...

Geometric average rate of return
The geometric average rate of return, also known as the time-weighted rate of return, over n periods is defined as: ...

See: Average rate of return A.S.X. See: Australian Stock Exchange Abandonment option The option of terminating an investment earlier than originally planned.

ARM See: Adjustable-rate mortgage ARPS See: Adjustable-rate preferred stock ARPS See: Auction rate preferred stock ARR See: Average rate of return AS The two-character ISO 3166 country code for AMERICAN SAMOA.

At a minimum, you want to: Decide on the annual income you desire in today's dollars; Pick a retirement date; Determine your lifetime average inflation rate; Determine the average rate of return you expect on your investments before and after ...

Return on Equity The annual average rate of return generated by a company during the past five years for each dollar of shareholder's equity (net income divided by shareholder's equity).

Strong outlook - There must be reason to believe that the company can earn above average rate of return. This requires a competitive advantage, barriers to entry, limited price competition. This effectively rules out commodity producers.

Accounting rate of return; Average rate of return
ARSC
Accounting and review services committee ...

The methods used when conducting an investment appraisal are: Payback: The amount of time needed to repay the initial investment. Average rate of return: The profits from an investment as a percentage of the initial capital cost.

A compounded average rate of return that is time weighted for a specified time period. Geometric averages are often used for measuring the performance of an investment portfolio, adjusted for the timing of new deposits and withdrawals.

Yield - The average annual rate of profit on shares returned to shareholders or the average rate of return on bonds.

For example, 2 multiplied by 8 equals 16. The square root of 16 is 4, the geometric average of 2 and 8. The geometric average is often used to find the average rate of return of the securities in an investment portfolio.

This amount is divided by the estimated life of the project to arrive at an annual return. That's divided by the investment's cost. The result is an average rate of return. See Discounted Cash Flow.

The internal rate of return method determines the interest rate (the average rate of return) at which the present value of future cash flows is equal to the cost of the investment now. You then make your decision on the basis of that yield.

over the short term in a down market or rise in an up market. The higher the volatility, the more potential for gain or loss. Volatility is based on standard deviation -- how much a fund's month-to-month returns vary from its average rate of return.

See also: Net present value, Banks, Interest rate swap, Mean return, Arithmetic mean

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