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LSDefine
Simple English definitions for legal terms
net return
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A quick definition of net return:
Net Return: The money you make from an investment after you subtract all the expenses you had to pay to make that investment. It's like getting paid for doing a job, but first you have to take out the money you spent on tools or transportation. The net return is what's left over.
A more thorough explanation:
Definition: The profit earned on an investment after subtracting all investment expenses.
Examples:
- If you invest $1000 in a stock and earn $1200 after deducting all expenses, your net return is $200.
- A real estate investor buys a rental property for $200,000 and earns $20,000 in rental income after deducting all expenses. The net return on the investment is 10%.
These examples illustrate how net return is calculated by subtracting all expenses from the total profit earned on an investment. It is an important metric for investors to evaluate the profitability of their investments.