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    Business GCSE

    Average Rate of Return (ARR)

    What Average Rate of Return (ARR) means in Business GCSE, as defined for OCR.

    Definition of Average Rate of Return (ARR)

    The average annual profit of an investment expressed as a percentage of the initial investment.
    OCR · Revenue, costs, profit and loss (study guide)

    Topics that use Average Rate of Return (ARR)

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    Using Average Rate of Return (ARR) in the exam

    Definition questions usually carry one or two marks, and examiners look for the precise wording. Write the definition from memory, check it against the version above, and then use the term in a longer answer on the same topic so it sticks.

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