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.
Topics that use Average Rate of Return (ARR)
- Revenue, costs, profit and loss (OCR GCSE)
Related terms
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.
Practise Business questions
Create a free account to answer exam-style questions on this topic and get feedback on your answers.
Start free
All Business GCSE terms7 days Premium · Then free forever · No card, no charge