January 8, 2015 in Other with: fish, life, pescatarian. I was originally intending to begin this post with the phrase, âI have a confession to makeâ¦â. But then I realized that the use of that phrase makes it sound like I have done something bad or wrong.
The marginal rate of return is a term that is used to identify the rate of return that is generated if a single unit is added to the current process, in comparison with choosing to maintain the status quo or taking some other type of action that exerts some effect on the returns realized.
For example, a return of +10%, followed by â10%, gives an arithmetic average return of 0%, but the overall result over the 2 sub-periods is 110% x 90% = 99% for an overall return of â1%. The order in which the loss and gain occurs does not affect the result.his means if reinvested, the return over 12 months would compound to give a return of 12.7%. As another example, a two-year return of 10% converts to an annualized rate of return of 4.88% = ((1+0.1) (12/24) - 1), assuming reinvestment at the end of the first year.