Rate of Return
/ˈreɪt əv rɪˈtɜrn/
Definitions
- (n.) The percentage gain or loss on an investment over a specified period of time, reflecting income and capital appreciation.
The contract specified a minimum rate of return of 5% annually.
Forms
- rate of return
- rate of returns
Related terms
See also
Commentary
In legal drafting, clearly defining the rate of return is crucial to delineate investment performance expectations and obligations.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.