Realized rate of return
Realized rate of return, r-, is the actual return an investor receives on his or her investment. It can be quite different than the expected return.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Realized rate of return, r-. The actual return an investor receives on his or her investment. It can be quite different than the expected return.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Realized rate of return, r. Returns that were actually earned during some past period. Actual returns (r) usually turn out to be different from expected returns (r) except for riskless assets.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
