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    Business GCSE

    Average rate of return

    What Average rate of return means in Business GCSE, as defined for AQA, Pearson Edexcel.

    Definitions of Average rate of return

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    Reference: Pearson Edexcel

    Evaluates investments by comparing average annual profit to the initial cost: (average annual profit / initial investment) × 100.
    Pearson Edexcel · Business calculations (study guide)
    A measure that compares average annual profit with the initial outlay, expressed as a percentage.
    AQA · Financial terms and calculations (study guide)
    Measures the average annual profit an investment generates as a percentage of its initial cost.
    AQA · Financial terms and calculations (study guide)

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