Annual rate of return
There are many ways of calculating the annual rate of return. If the rate of return is calculated on a monthly basis, we sometimes multiply this by 12 to express an annual rate of return. This is often called the annual percentage rate (APR). The annual percentage yield (APY) includes the effect of compounding interest.
Nearby TermsAnnual percentage rate (APR) Annual percentage yield (APY) Annual rate of return Annual renewable term insurance Annual report
Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University