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1 rate of return
Finan accounting ratio of the income from an investment to the amount of the investment, used to measure financial performance.EXAMPLEThere is a basic formula that will serve most needs, at least initially:[(Current value of amount invested – Original value of amount invested) / Original value of amount invested] × 100% = rate of returnIf $1,000 in capital is invested in stock, and one year later the investment yields $1,100, the rate of return of the investment is calculated like this:[(1100 – 1000) / 1000] × 100% = 100 / 1000 × 100% = 10% rate of returnNow, assume $1,000 is invested again. One year later, the investment grows to $2,000 in value, but after another year the value of the investment falls to $1,200. The rate of return after the first year is:[(2000 – 1000) / 1000] × 100% = 100%The rate of return after the second year is:[(1200 – 2000) / 2000] × 100% = – 40%The average annual return for the two years (also known as average annual arithmetic return) can be calculated using this formula:(Rate of return for Year 1 + Rate of return for Year 2) /2 = average annual returnAccordingly:(100% + – 40%) /2 = 30%The average annual rate of return is a percentage, but one that is accurate over only a short period, so this method should be used accordingly.The geometric or compound rate of return is a better yardstick for measuring investments over the long term, and takes into account the effects of compounding. This formula is more complex and technical.The real rate of return is the annual return realized on an investment, adjusted for changes in the price due to inflation. If 10% is earned on an investment but inflation is 2%, then the real rate of return is actually 8%. -
2 Rate of Return
Telecommunications: ROR -
3 Rate on Return
oil&gas: ROR -
4 rate of return
норма рентабельности; коэффициент отдачи; рентабельностьАнгло-русский словарь промышленной и научной лексики > rate of return
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5 expected rate of return
Finthe projected percentage return on an investment, based on the weighted probability of all possible rates of return.Abbr. ERREXAMPLEIt is calculated by the following formula:E[r]= ΣsP(s)rswhere E[r] is the expected return, P(s) is the probability that the rate rs occurs, and rs is the return at s level.The following example illustrates the principle which the formula expresses.The current price of ABC Inc. stock is trading at $10. At the end of the year, ABC shares are projected to be traded:25% higher if economic growth exceeds expectations—a probability of 30%;12% higher if economic growth equals expectations—a probability of 50%;5% lower if economic growth falls short of expectations—a probability of 20%.To find the expected rate of return, simply multiply the percentages by their respective probabilities and add the results:(30% × 25%) + (50% × 12%) + (25% × –5%) = 7.5 + 6 + –1.25 = 12.25% ERRA second example:if economic growth remains robust (a 20% probability), investments will return 25%;if economic growth ebbs, but still performs adequately (a 40% probability), investments will return 15%;if economic growth slows significantly (a 30% probability), investments will return 5%;if the economy declines outright (a 10% probability), investments will return 0%.Therefore:(20% × 25%) + (40% × 15%) + (30% × 5%) + (10% × 0%) = 5% + 6% + 1.5% + 0% = 12.5% ERR. -
6 internal rate of return
Finthe annual percentage return achieved by a project, in which the sum of the discounted cash inflows over the life of the project is equal to the sum of the discounted cash outflows.Abbr. IRR -
7 required rate of return
Finthe minimum return for a proposed project investment to be acceptable. -
8 (Average Annual Rate of Return) Средняя годовая норма прибыли
Economy: AARRУниверсальный русско-английский словарь > (Average Annual Rate of Return) Средняя годовая норма прибыли
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9 (minimum) required rate of return
Engineering: RRRУниверсальный русско-английский словарь > (minimum) required rate of return
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10 Compound Annual Rate Of Return
Accounting: CARRУниверсальный русско-английский словарь > Compound Annual Rate Of Return
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11 External Rate Of Return
Accounting: ERRУниверсальный русско-английский словарь > External Rate Of Return
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12 Normal Rate Of Return
Accounting: NRRУниверсальный русско-английский словарь > Normal Rate Of Return
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13 Real Rate of Return
Abbreviation: RRRУниверсальный русско-английский словарь > Real Rate of Return
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14 Required Rate of Return
Abbreviation: RRRУниверсальный русско-английский словарь > Required Rate of Return
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15 Time- Adjusted Rate of Return
Accounting: TARRУниверсальный русско-английский словарь > Time- Adjusted Rate of Return
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16 accounting rate of return
Finances: ARRУниверсальный русско-английский словарь > accounting rate of return
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17 discounted cash flow rate of return
Универсальный русско-английский словарь > discounted cash flow rate of return
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18 discounted rate of return
Oil: DRRУниверсальный русско-английский словарь > discounted rate of return
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19 economic rate of return
EBRD: ERRУниверсальный русско-английский словарь > economic rate of return
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20 financial internal rate of return
EBRD: FIRRУниверсальный русско-английский словарь > financial internal rate of return
См. также в других словарях:
rate of return — n. The percentage of profit made on an investment. The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008 … Law dictionary
Rate of return — In finance, rate of return (ROR), also known as return on investment (ROI), rate of profit or sometimes just return, is the ratio of money gained or lost (whether realized or unrealized) on an investment relative to the amount of money invested.… … Wikipedia
rate of return — Calculated as the (value now minus value at time of purchase) divided by value at time of purchase. For equities ( equity), we often include dividends with the value now. See also: return, annual rate of return. Bloomberg Financial Dictionary * * … Financial and business terms
rate of return — The annual income earned from the investment of resources in a commercial or economic activity, usually expressed as a percentage of the original investment. In a discounted cash flow appraisal, for example, the rate of return may be expressed as … Accounting dictionary
rate of return — rates of return N COUNT The rate of return on an investment is the amount of profit it makes, often shown as a percentage of the original investment. [BUSINESS] High rates of return can be earned on these investments. ...an 8 per cent average… … English dictionary
rate of return — noun the amount returned per unit of time expressed as a percentage of the cost • Hypernyms: ↑rate • Hyponyms: ↑return on invested capital, ↑return on investment, ↑ROI * * * : the ratio of net railway operating income to the value of the property … Useful english dictionary
rate of return — The annual amount of income from an investment, expressed as a percentage of the original investment. This rate is very important in assessing the relative merits of different investments. It is therefore important to note whether a quoted rate… … Big dictionary of business and management
Rate Of Return — The gain or loss on an investment over a specified period, expressed as a percentage increase over the initial investment cost. Gains on investments are considered to be any income received from the security plus realized capital gains. A rate of … Investment dictionary
rate of return — grąžos norma statusas T sritis turto vertinimas apibrėžtis Pajamų (nuostolio) dydis ir (arba) faktinis ar numatomas investicijų vertės pokytis, išreikštas procentine investicijų dalimi. atitikmenys: angl. rate of return šaltinis Tarptautiniai… … Lithuanian dictionary (lietuvių žodynas)
Rate-of-return regulation — is a system for setting the prices charged by regulated monopolies. The central idea is that monopoly firms should be required to charge the price that would prevail in a competitive market, which is equal to efficient costs of production plus a… … Wikipedia
rate of return — rate of re turn n [singular] a company s profit for a year, expressed as a ↑percentage of the money that the company has spent during the year … Dictionary of contemporary English