Definition of Rate of Return

Financial Terms Beginning with R

What is the Rate of Return

The rate of return is the yield that can be earned on an investment or security, based on its purchase price or its current market price, over a specified period of time.

Glossary of Terms and Phrases

A financial dictionary or glossary is an essential tool to better understand the meaning of a specialized term or phrase. It would obviously make life much easier if everyone spoke the same language and used the same financial terms and phrases but that is not realistic.

We learn new languages to communicate with each other, transact business globally and to appreciate other cultures. Global finance is a specialized language that if understood and mastered, it will provide benefits that help to decrease risk and improve investment returns. Financial literacy is the foundation of developing good investment strategies and sound decision making.

Related Investment Terms

Current Yield

Yield to Maturity

Yield Curve

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