What does average rate of return mean?

average rate of return meaning in Law Dictionary

the best way to appraise investments to anticipate the return. The money flows is divided by the number of years of financial investment.

average rate of return meaning in Business Dictionary

Method of investment appraisal which determines return on investment by totaling the bucks moves (over time which is why the funds had been invested) and dividing that amount because of the number of years.