In investing, what is rate of return?

Accounting Dec 18, 2020

Expert Solution

The rate of return is the increase in value earned on an investment as a percentage of the original investment. The rate of return is found by taking the current value of the investment and subtracting the original price and then dividing by the original value invested. If you invested $50 in a stock and it is now worth $77, then to find ROR you would calculate:

($77-50) / 50
27/50
54% Rate of Return

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