rate-of-return

Vocabulary Word

Definition

'Rate-of-return' is a measure of how much money something is making compared to how much was spent on it. It's often presented as a percentage, like if you invested $1,000 in stocks and made $100, your rate-of-return would be 10%.

Examples in Different Contexts

The rate of return is the percentage of profit or loss on an investment over a specified period. An investor might say, 'I'm evaluating the rate of return on various investments to determine which ones align best with my financial goals.'

Practice Scenarios

Business

Scenario:

This mutual fund hasn't performed as well as expected. We should explore some other high-performing options.

Response:

I agree, we may need to look into avenues that offer a higher rate-of-return.

Tech

Scenario:

Our new app has gained traction faster than anticipated. Still, we should be cautious not to overspend on marketing.

Response:

True, while scaling up, we should aim to maintain a positive rate-of-return on the app.