Actual rate of return
Actual rate of return, r¯s (alternatively known as realized rate of return) is the rate of return that was actually realized at the end of some holding period.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Actual rate of return (realized rate of return), r¯s. The rate of return that was actually realized at the end of some holding period.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Actual rate of return (realized rate of return), rs. The rate of return on a common stock actually received by stockholders in some past period; rs may be greater or less than r⁄s and/or rs.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
