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The risk-adjusted return is a measure of how much risk a fund or portfolio takes on to earn its returns, usually expressed as a number or a rating. This is often represented by the Sharpe Ratio. The more return per unit of risk, the better. The Sharpe Ratio is calculated as the difference between the mean portfolio return and the risk free rate (numerator) divided by the standard deviation of portfolio returns (denominator).

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The Guillermo furniture store scenario Compute the return on investment residual income and economic value added for the current situation?

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The return on investment formula:ROI=(Gain from Investment - Cost of Investment)/Cost of Investment.


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The rate of return is a percentage that shows how much an investment has gained or lost over a specific period, while the return on investment is a ratio that compares the profit of an investment to its cost.


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Return on investment is calculated by subtracting investment capital from the return, taking into account inflation, taxation and the time frame involved.


How can I calculate the rate of return on my investment?

To calculate the rate of return on your investment, subtract the initial investment amount from the final value of the investment, then divide that result by the initial investment amount. Multiply the result by 100 to get the rate of return as a percentage.


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To calculate the holding period return for an investment, subtract the initial investment amount from the final investment value, then divide by the initial investment amount. Multiply the result by 100 to get the percentage return.


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Investment deportation reserve not considered as free reserve


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