Rate of Return

A percentage measurement of revenue generated by an investment for an investor. This rate divides the revenue received by the amount of the initial investment and is usually provided for a specific period. For example, an investor buys a stock for $100 and receives $5 in dividends during the first year. That investment generated a preliminary rate of return of 5%. For more information, see the "Real Estate Investment Analysis Tools" article in the "Real Estate Investing" section.

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