# Rate Of Return

Business / Taxes / Rate Of Return: Rate of return is income you collect on an investment expressed as a percentage of the investment’s purchase price. With a common stock, the rate of return is dividend yield, or your annual dividend divided by the price you paid for the stock. However, the term is also used to mean percentage return, which is a stock’s total return — dividend plus change in value — divided by the investment amount. With a bond, rate of return is the current yield, or your annual interest income divided by the price you paid for the bond. For example, if you paid \$900 for a bond with a par value of \$1,000 that pays 6% interest, your rate of return is \$60 divided by \$900, or 6.67%.

## Other Words for Rate

Rate Verb Synonyms: measure, pace, gait, speed, velocity, clip
Rate Noun Synonyms: rank, grade, class, classify, evaluate, estimate, calculate, compute, count, reckon, judge, gauge, assess, appraise, measure
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## Other Words for Return

Return Noun Synonyms: replace, put back, restore, give back, bring or carry back
Return Adjective Synonyms: exchange, bring back or carry back
Return Verb Synonyms: come or go back, revert, turn back
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Business / Finance / Risk-Adjusted Return: Often we subtract from the rate of return on an asset a rate of return from another asset that has similar risk. This gives an abnormal rate of return that shows how the asset performed over and above MORE

### Multiple Rates Of Return

Business / Finance / Multiple Rates Of Return: More than one rate of return from the same project that makes the net present value of the project equal to zero. This situation arises when the IRR method is used for a project in which negative cash MORE

### Cost Of Funds

Business / Finance / Cost Of Funds: The required rate of return for an investment of 100% equity. MORE