What is 'Internal Rate of Return (IRR)'? Definition & meaning

More terms

Volatility

A measure of how much the prices of an asset or index vary over time.

Custodian bank

Learn what a custodian bank is.

W-8BEN Form

Non-US individuals and businesses may have to file this form for the Internal Revenue Service (IRS), the US tax authority.

Free Trade

The other free trade. International trade in which countries allow goods to flow across their borders without imposing import or export taxes.

Arithmetic Mean

The sum of a set of numbers added together and then divided by the total amount of numbers in that set.

Rate of Return

Profit on an investment, expressed as a percentage of the investment.

Yield curve

A graphical representation of interest rates over time

Earnings per share

We look at what earnings per share mean and how to calculate it

Coupon

Also called a dividend, this is the fixed annual interest paid to gilt holders. It’s usually paid in two equal, semi-annual instalments and expressed as a percentage of the nominal value of the gilt.

Internal Rate of Return (IRR)