In finance, return is a profit on an investment. It comprises any change in value of the investment, and/or cash flows which the investor receives from that investment, such as interest payments, coupons, cash dividends, stock dividends or the payoff from a derivative or structured product.
Formula
R=\frac {V_f-V_i}{V_i}
R = return
V_f = final value, including dividends and interest
In finance, return is a profit on an investment. It comprises any change in value of the investment, and/or cash flows which the investor receives from that investment, such as interest payments, coupons, cash dividends, stock dividends or the payoff from a derivative or structured product.
Formula
R=\frac {V_f-V_i}{V_i}
R = return
V_f = final value, including dividends and interest
V_i = initial value
The annual rate of return is the percentage change in the value of an investment. For example: If you assume you earn a 10% annual rate of return, then you are assuming that the value of your investment will increase by 10% every year.
Answers & Comments
Answer:
In finance, return is a profit on an investment. It comprises any change in value of the investment, and/or cash flows which the investor receives from that investment, such as interest payments, coupons, cash dividends, stock dividends or the payoff from a derivative or structured product.
Formula
R=\frac {V_f-V_i}{V_i}
R = return
V_f = final value, including dividends and interest
V_i = initial value
In finance, return is a profit on an investment. It comprises any change in value of the investment, and/or cash flows which the investor receives from that investment, such as interest payments, coupons, cash dividends, stock dividends or the payoff from a derivative or structured product.
Formula
R=\frac {V_f-V_i}{V_i}
R = return
V_f = final value, including dividends and interest
V_i = initial value
The annual rate of return is the percentage change in the value of an investment. For example: If you assume you earn a 10% annual rate of return, then you are assuming that the value of your investment will increase by 10% every year.