Rate of return refers to the net gain or loss of an investment over a specified time period, expressed as a percentage of the investment's initial cost.
It is a measure of the profitability of an investment and can be used to evaluate the efficiency or profitability of an investment. The rate of return takes into account any change in the value of the investment and/or cash flows received from the investment over a specified time period.
It is calculated by determining the percentage change from the beginning of the period until the end. The rate of return is an important metric for investors as it helps them assess the performance of their investments and compare the returns of different investment opportunities