rate of return - the financial return expressed as a percentage measuring the periodic earnings (either before or after expenses) against the initial investment, proposed purchase price, or appraised value. Such rates are usually and more meaningfully defined as rate of return on equity, after-tax rate of return, internal rate of return, financial management rate of return, net present value, and the like. Each has its particular relevancy in terms of the objective of the measurement. See also internal rate of return and net present value.

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