What is "The market rate of return"?

Question

I'm doing my final paper for a presonal finance class and it asks me how my precentage reutrn compares to the market rate of return. What does this mean? What IS the market rate of return?

Answer 1

Market rate of return is how much profit you get back on a certain investment. Suppose you run a store and spend 100 on inventory and sell it for 112. You made 12 for a 12% rate of return. Same thing goes for purchase price of stocks or any investment.