View source for 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 effort]]s undertaken in order to procure and utilize monetary resources of the [[enterprise]].

==Related lectures==
*[[Introduction to Financial Management]]. 

[[Category: Financial Management]][[Category: Articles]]