Question

Normal rate of return depends on?

Answer 1

Answer:

It was depend on measurement

Explanation:

The return, or rate of return, depends on the currency of measurement. For example, suppose a 10,000 USD (US dollar) cash deposit earns 2% interest over a year, so its value at the end of the year is 10,200 USD including interest. The return over the year is 2%, measured in USD.

The normal rate of return is the calculation of the profits made from an investment after subtracting the capital, investment and operating costs. The normal rate of return is used to describe the rate of loses or gains from an investment.

NORMAL RATE OF RETURN, for individuals, is the average rate of return on all investments, i.e. the average of all returns yields the normal rate of return. For capital investments for businesses, it is the profit relative to capital investment.

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Answer 2

The normal rate of return:

• The normal rate of return is a term used to describe the rate at which an investment loses or gains money.
• That is to say, it is the calculation of an investment's profits after deducting capital, investment, and operating costs.
• It's a metric that investors use to determine whether a company is worth investing in or if they should go elsewhere.
• Businesses also use it to determine whether or not they are producing appropriate profits and, if so, by what proportion.