Lin Zhang

Lin Zhang

May 06, 2026

yield, capital-weighted method, time-weighted method.

In people’s daily lives, they encounter numerous investment activities, nearly all of which aim at generating returns. A straightforward method to assess the effectiveness of returns is through the rate of return, which represents the interest rate that equalizes the present value of the invested funds with the present value of the recovered funds. This article takes a one-year investment as an example to introduce various methods for calculating the investment rate of return. The calculation method for investments exceeding one year is essentially the same as that for one-year investments, which can also be calculated annually and then the total rate of return can be comprehensively calculated. However, this article will not cover this for the time being.

© 2026, the Authors. Published by ISCCAC

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