The rate of return is calculated as:
A)(dollar amount of average investment)x (dollar amount of return)
B)(present value of $1)/(dollar amount of average investment)
C)(dollar amount of return)/(dollar amount of initial investment)
D)(future value of $1)x (dollar amount of initial investment)

Question

Quizplus · Accepted Answer

The rate of return is calculated as the dollar amount of return divided by the dollar amount of initial investment. This gives a percentage representing the profit or loss on the investment.

The Rate of Return Is Calculated As