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What is the difference between return on investment and return on assets?
Wiki User
∙ 14y ago
They are one and the same and they are used interchangeably.
Wiki User
∙ 14y ago
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What is the difference between return on capital and return on investment?
return on capital = earnings before interest and tax / capital employed * 100
What is the difference between a high and a low tolerance for risk?
It's a client's willingness to trade higher rates of return on an investment for the risk of losing part or all of their capital investment.
What is the difference between return on equity and return on net worth?
Return on equity is the rate of returns you earned on your equity investments Return on net worth is the rate at which your entire property is growing (Your net worth is the sum of all your assets - all your liabilities)
How do you Calculate a Return on an Investment?
The return on investment formula:ROI=(Gain from Investment - Cost of Investment)/Cost of Investment.
What is the Difference between a CDO and CLO?
Essentially not a great deal! A Collateralised Debt Obligation (CDO) is a product whereby a Special Purpose Vehicle (SPV) is populated with a wide variety of assets. The returns from these assets are then split by risk such that depending on your risk aversion/investment profile you can buy highly rated tranches of a CDO with lower rates of return, or alternatively more risky tranches with higher rates of return. A Collateralised Loan Obligation (CLO) only has loans in the SPV.
What is the difference between investment and expenditure?
An investment you expect a return, with the other, you don't.
Difference between marginal efficiency of investment and marginal efficicency of capital?
MEC is the expected rate of return on capital and MEI is the expected rate of return on investment.
What is the difference between return on capital and return on investment?
return on capital = earnings before interest and tax / capital employed * 100
What does return on assets mean?
Return on assets (or ROA) means how profitable a company is based on their total assets. The ROA is calculated by dividing a companies total earnings by it's total assets. It is often also called return on investment.
What expressions is termed the investment turnover factor as used in determining the rate of return on investment?
Sales/Invested Assets
What is the difference between returns and profit?
return is calculate against investment. profit is calculte against cost.
What is the difference between the natural state of interest and the bank rate?
In contemporary terms, the natural rate of interest is what businesses expect to earn on real investment. The bank rate is the return on financial assets in general and commercial bank loans in particular.
What is the difference between yield and coupon rate?
The difference between the coupon rate and the required return of a bond is dependent upon the type of bond. Junk bonds will have the biggest difference between its return and the coupon rate.
The difference between the amount of money received from selling an investment and the amount of money spent to purchase the investment its known as?
The difference between the amount of money received from selling an investment and the amount of money spent to purchase the investment is known as the capital gain or loss. When the capital gain or loss is then compared to the initial investment (through division), the result is the capital gains yield or return on investment (assuming there are no cash flows such as coupon payments or dividends).
What is the difference between a high and a low tolerance for risk?
It's a client's willingness to trade higher rates of return on an investment for the risk of losing part or all of their capital investment.
What is the relationship between financial decision making and risk and return Would all financial managers view risk-return trade-offs similarly?
return is a reward gained from investing or the reward from employing assets in a company. risk is the degree of uncertainty of possible return generated from an investment
Manager risks on diverting financial assets?
There are so many risks that a manager faces on diverting financial assets. This may include misuse of the assets and not getting the expected return on investment among others.
