exponential return
- noun
- Specialized
- Investing early in a diversified portfolio can lead to an exponential return over time due to compound interest.
Examples
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The startup experienced an exponential return on investment within just a few years, vastly outperforming traditional businesses.
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The data showed that the company's profits would achieve an exponential return as they expanded into new markets.
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The Beaver, as a core item, along with endless project kits could produce an exponential return.
Antonyms
How Fast
Surface Forms
Morphology
The phrase is directly compositional: 'exponential' (increasing at an accelerating rate) modifies 'return' (monetary yield), so the meaning 'a return that grows exponentially' is inferable from the constituent words. Although somewhat technical in register, the semantic relation is transparent and follows ordinary adjective + noun combination patterns.
Etymology
Exponential return uses a simple image: think of a small snowball rolling down a hill that grows much more with each roll, so the return, the amount you get back, grows or falls faster and faster. That's why 'exponential return' means a return that changes very quickly over time, a fast 'increase' or 'decrease'.