rate of return
Profit percentage earned
Rate of return is how much money an investment gains or loses over time, expressed as a percentage of the original amount invested.
A stock purchased for $100 that's worth $110 a year later has a 10% annual rate of return.
The measure allows comparison across different investments regardless of their size: The fund's rate of return beat the market average.
Produce or relinquish
- APRYearly borrowing cost
- APYAnnualized compounded interest rate
- compound interestReturns on reinvested earnings
- accrualIncremental addition over time
principal · bond yield · fixed income · maturity · basis points · spread · treasury yield · dividend yield
Ownership stakes or inventory
- bondsTies that unite
- mutual fundsCollectively managed securities portfolios
- index fundsSecurities mirroring market indices
- ETFsExchange-listed investment baskets
real estate · equities · securities · asset allocation · diversification · portfolio · income generation · growth investing
First Greek letter
- betaGreek alphabet's second letter
- capital gainsProfit from asset sales
- dividendsProfits paid to shareholders
- benchmarkStandard for comparison
Rapid, unpredictable changeability
- standard deviationSpread around the mean
- downside riskPotential for negative returns
- drawdownReduction over time
- betaGreek alphabet's second letter
correlation · risk premium · risk tolerance · loss · uncertainty · market risk · credit risk · inflation risk
yield
Produce or relinquish
- APRYearly borrowing cost
- APYAnnualized compounded interest rate
- compound interestReturns on reinvested earnings
accrual · principal · bond yield · fixed income · maturity · basis points · spread · treasury yield · dividend yield
stocks
Ownership stakes or inventory
- bondsTies that unite
- mutual fundsCollectively managed securities portfolios
- index fundsSecurities mirroring market indices
ETFs · real estate · equities · securities · asset allocation · diversification · portfolio · income generation · growth investing · value investing
alpha
First Greek letter
- betaGreek alphabet's second letter
- capital gainsProfit from asset sales
- dividendsProfits paid to shareholders
volatility
Rapid, unpredictable changeability
- standard deviationSpread around the mean
- downside riskPotential for negative returns
- drawdownReduction over time
beta · correlation · risk premium · risk tolerance · loss · uncertainty · market risk · credit risk · inflation risk
- financebank, CFO, banks, controller, finance
- ratesroyalty, per diem, percentage, ratio, bond yield
- investment returnsdividends, ROI, capital gains, profit, yield
- yieldscrop, harvest, output, produce, bounty
- interest ratesinterest, interest charge, interest income, interest payments, compound interest
- development financedevelopment projects, infrastructure funding, grant funding, World Bank, IMF
rate of returnprincipal
Chief school administrator
principal amount · capital · cost basis · initial investment · corpus
return, rate, rating, returns, rates, rated, returning, underrate, overrate