Fair rate of return 


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Fair rate of returnThe rate of return that state governments allow a public utility to earn on its investments and expenditures. Utilities then use these profits to pay investors and provide service upgrades to their customers.Fair rate of return Similar MatchesRate of returnRate of returnCalculated as the (value now minus value at time of purchase) divided by value at time of purchase. For equities, we often include dividends with the value now. See also: Return, annual rate of return. Increasing returns to scaleIncreasing returns to scaleA property of a production function such that changing all inputs by the same proportion changes output more than in proportion. Common forms include homogeneous of degree greater than one and production with constant marginal cost but positive fixed cost. Also called economies of scale, scale economies, and simply increasing returns. Contrasts with decreasing returns and constant returns. Mean returnMean returnSee: Expected return External increasing returns to scaleExternal increasing returns to scaleExternal economies of scale. Annualized holding period returnAnnualized holding period returnThe annual rate of return that when compounded t times generates the same tperiod holding return as actually occurred from period 1 to period t. Further SuggestionsReturn on investment (ROI)Horizon return Market RRR (required rate of return) Schedule Pretax rate of return Average rate of return (ARR) T period holding period return Specific Return Leveraged required return Portfolio internal rate of return Subperiod return Decreasing returns to scale Cash on cash return Individual tax return Risk adjusted return real return Cumulative abnormal return (CAR) Expost average rate of return Separate tax returns After tax real rate of return Risk return trade off Return to maturity expectations Return Compound Annual Return return on capital employed Consolidated tax return 
