Simple rate of return

Definition:

The return from investments figured by dividing income plus capital gains by the amount of capital invested. The effect of compounding is not taken into account.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Snake

Arrangement established in 1972, that ties European currencies to each other within specified limits.

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