0
Return on investment simply indicates the difference of the future value of funds tied to a financial instrument as compared to their present valuation. For example, an asset with a market price of $100 today and $110 one year from now would be said to earn a 10% return on investment. That is, the future value ($110) minus the value today ($100), all divided by the value today ($100). Several factors influence the rate of return on an investment. These include, but are not limited to: inflation, which effects future cash flows of an investment, risk premiums, which provide for larger returns given a larger acceptance of risk, and timing, which effects valuation when compounding or discounting projected cash flows.
Wiki User
∙ 14y ago
Return on investment (ROI) is a financial metric used to evaluate the profitability of an investment relative to its cost. It is calculated by dividing the net profit from the investment by the initial cost of the investment, usually expressed as a percentage. A higher ROI indicates a more profitable investment.
Wiki User
∙ 14y agoRisk is typically measured by the potential for loss in the value of your investments. Return is the profit or loss on your investments.
Add your answer:
Earn +20 pts
Explanation on the meaning of spatial concepts?
Spatial concepts refer to ideas and understanding related to space and its characteristics. They include concepts such as distance, direction, location, orientation, and scale. These concepts help us navigate and understand our physical surroundings, as well as develop maps and models to represent spaces. Spatial concepts are important for various fields like geography, architecture, urban planning, and design.
Which information can be accessed via stanlib secure online?
Stanlib secure online portal provides access to various information related to your investment accounts, such as account balances, transaction history, investment performance, statements, and the ability to update personal information and investment instructions. It also offers research reports, market updates, and educational resources to help clients make informed investment decisions.
What are data models in dbms?
A data model is a collection of concepts that can be used to describe the structure of a database. Data models can be broadly distinguished into 3 main categories- 1)high-level or conceptual data models (based on entities & relationships) It provides concepts that are close to the way many users perceive data. 2)lowlevel or physical data models It provides concepts that describe the details of how data is stored in the computer. These concepts are meant for computer specialist, not for typical end users. 3)representational or implementation data models (record-based,object-oriented) It provide concepts that can be understood by end users. These hide some details of data storage but can be implemented on a computer system directly.
Where is it possible to learn about data warehousing concepts?
You can learn about data warehousing concepts through online courses on platforms like Coursera, Udemy, and LinkedIn Learning. Additionally, you can read books on data warehousing by authors such as Ralph Kimball and Inmon. Industry conferences and workshops may also provide insights into the latest trends and practices in data warehousing.
What are the classification of idea?
Ideas can be classified into three main categories: abstract ideas (concepts or theories), concrete ideas (physical objects or actions), and creative ideas (innovative or imaginative concepts). Each classification represents a different type of thought or inspiration.
The concepts of return on investment and risks?
Investment return and risk are fundamental to understanding market behavior. Return on investment is essentially profit made by an investor. Profits and losses must be analyzed carefully, as simple percentage comparisons give misleading answers. Risk refers to the probability of depreciation as well as its potential magnitude, which can exceed original invested amount. Risk and return on investment are directly correlated; higher risk begets a smaller chance of high return and vice versa.
How do you Calculate a Return on an Investment?
The return on investment formula:ROI=(Gain from Investment - Cost of Investment)/Cost of Investment.
How is ROI or return on investment calculated?
Return on investment is calculated by subtracting investment capital from the return, taking into account inflation, taxation and the time frame involved.
Return On Investment in fmcg?
Return on investment is the amount that you get back for investing in something. The formula is ROI=(Profit *100)/(Investment * number of years.)
What factors affect the rate of return of an investment at maturity?
What factors affect the rate of return of an investment at maturity?
Return on investment and safety of investment?
Return on investment is the amount of profit on the invested money after deducting taxes, safety of investment is the risk factor involved in the investment. Such as risk is high safety of investment is less.
Is return of investment an income acct?
Yes the amount would be a taxable income amount after your return of investment amounts exceed your cost basis in the investment.
A risk of money to get something in return is called?
An investment.
When a corporation weighs its return on investment for initiating a new project against the minimum standard investment return it has set before it the minimum standard investment return is referred t?
Hurdle rate
How can I tell what the return would be on an investment?
You can use a specialized tool called a "return on investment calculator." One of these special tools can be found here: http://www.money-zine.com/Calculators/Investment-Calculators/Return-on-Investment-Calculator/ It takes the amount of the original investment, the future value of the investment, and the time elapsed into account.
ROI?
Return On Investment
How do you calculate ROI?
Definition of 'Return On Investment - ROI'A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio. The return on investment formula:
