# rate of return

## Definition

**also called**return.

## Use rate of return in a sentence

“ The RATE OF RETURN for my ROTH IRA is a miniscule .5% annual return on investments which is 20 times less than my stock market percentage. ”

“ My company decided not to invest in the bond offering from our competitor because we believed the rate of return was not high enough to justify the risk. ”

“ In purchasing the recently foreclosed house in an area experiencing gentrification, the new owner sought to make a significant rate of return by converting it to a rental property for young people right out of college. ”

## Related Terms

### Mentioned in these terms

- modified internal rate of return (MIRR)
- dollar-weighted rate of return
- time-weighted rate of return
- portfolio internal rate of return
- risk adjusted rate of return
- required rate of return
- riskless rate of return
- incremental internal rate of return
- interim rate of return
- pooled internal rate of return (PIRR)