An annualized rate is an extrapolation of an occurrence lasting a limited time period to determine the amount or rate generated over a year. It is often used to project the yearly performance of an interest rate, investment return, or seasonal business activity such as ice cream sales.
Equivalent Taxable Yield is a comparison of the taxable yield on a corporate bond with the tax-free yield on a municipal bond. Depending on the tax bracket, an investor's after-tax return may be greater with a municipal bond than with a corporate bond offering a higher interest rate.
Historical Yield refers to the return on investment provided by a mutual fund, typically a money market fund, over a particular period of time. For instance, a money market fund may advertise that its historical yield averaged 4% over the last year.
An income stream refers to the regular flow of money generated by a business or investment, essential for evaluating financial health and planning future strategies.
The initial yield represents the gross initial annual income generated by an asset divided by the initial cost of that asset. It is commonly used in real estate and investment analysis to measure the initial return on investment.
The nominal interest rate is the rate of return on an investment that is unadjusted for the effect of inflation. It is distinguished from the real rate, which is the nominal rate less the rate of inflation.
The Overall Rate of Return (OAR) is a percentage relationship of net operating income (NOI) divided by the purchase price of a property. It is a metric used to assess the profitability of an investment.
An investment strategy involving the use of borrowed funds to increase the return on an investment.
Rate of Return on Equity (ROE) measures the profitability of an investment, focusing on net income generated by shareholders' equity. It provides insights into how efficiently a company uses its equity base to generate profits.
Return on Capital Employed (ROCE) is an accounting ratio that measures an organization's profitability and efficiency in using its capital. It is expressed as a percentage of profit relative to the capital employed.
