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Definition 2024


rate_of_return

rate of return

English

Noun

rate of return (plural rates of return)

  1. (finance) The amount of profit earned in a reporting period, expressed as a percentage of the cost.
    • 1992, William Ascher, Coping with the Disappointing Rates of Return of Development Projects That Affect the Environment:
      Kaufmann (and others) show that macro-policy distortions, such as overvalued exchange rates, trade restrictions, and poor fiscal policies, partially account for the disappointing rates of return.
    • 2013, J. David Cummins & ‎Scott E. Harrington, Fair Rate of Return in Property-Liability Insurance, ISBN 9401577536, page xiii:
      The initial fair rate of return studies in insurance adopted the book value approach. These studies looked at accounting returns in insurance (usually, rate of return on equity or on total assets) and compared them to returns in other industries.