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To calculate the return on an investment you will fist write down the amount of your total investment including fees and any expenses. Next, write down your loss and finally calculate the return on investment by dividing the profit by total investment. www.moneychimp.com offers a compound interest calculator for your convenience.

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10000 to invest in a stock portfolio. stock A expected return 18 and stock B expected return 11. create a portfolio with expected return of 16.25. how much to invest in stock A and stock B?

6000.00


If a stocks expected return exceeds it required return this suggests that?

dividends are not being declared


What is the risk-free rate if the expected return is 20.4 and beta is 1.6 and expected market return is 15?

expected market return = risk free + beta*(market return - risk free) So by putting in values: 20.4 = rf+ 1.6(15-rf) expected market return = risk free + beta*(market return - risk free) So by putting in values: 20.4 = rf+ 1.6(15-rf) where rf = risk free 20.4 - 24 = rf - 1.6rf -3.6 = -0.6rf rf = 6


What is the purpose of finding the standard deviation of a data set?

The purpose of obtaining the standard deviation is to measure the dispersion data has from the mean. Data sets can be widely dispersed, or narrowly dispersed. The standard deviation measures the degree of dispersion. Each standard deviation has a percentage probability that a single datum will fall within that distance from the mean. One standard deviation of a normal distribution contains 66.67% of all data in a particular data set. Therefore, any single datum in the data has a 66.67% chance of falling within one standard deviation from the mean. 95% of all data in the data set will fall within two standard deviations of the mean. So, how does this help us in the real world? Well, I will use the world of finance/investments to illustrate real world application. In finance, we use the standard deviation and variance to measure risk of a particular investment. Assume the mean is 15%. That would indicate that we expect to earn a 15% return on an investment. However, we never earn what we expect, so we use the standard deviation to measure the likelihood the expected return will fall away from that expected return (or mean). If the standard deviation is 2%, we have a 66.67% chance the return will actually be between 13% and 17%. We expect a 95% chance that the return on the investment will yield an 11% to 19% return. The larger the standard deviation, the greater the risk involved with a particular investment. That is a real world example of how we use the standard deviation to measure risk, and expected return on an investment.


What percentage of return annually can be expected from a high yield savings account?

A percentage of return that can be expected from a high yield savings account is 0.10%. Although this is the average, some percentages can get as high as 0.90%.

Related Questions

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 expected rate of return on investment for this opportunity?

The expected rate of return on investment for this opportunity is the anticipated percentage increase in value or profit that an investor can expect to receive from their investment.


How can one determine the expected rate of return for an investment?

To determine the expected rate of return for an investment, one can calculate the average annual return based on historical data, analyze the current market conditions and economic outlook, consider the risk associated with the investment, and use financial models such as the Capital Asset Pricing Model (CAPM) or the Dividend Discount Model (DDM).


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.


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.


How do you calculate the rate of return on an investment?

To calculate the rate of return on an investment, you 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 percentage rate of return.


How can one calculate the holding period return for an investment?

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.


What is the difference between the required rate of return and the expected rate of return in investment analysis?

The required rate of return is the minimum return an investor needs to justify the risk of an investment, while the expected rate of return is the return that an investor anticipates receiving based on their analysis of the investment's potential performance.


Can I calculate my investment return online?

You can calculate investment return online. You can go to www.calculatorpro.com ��_ Financial or www.dinkytown.net/java/InvestmentReturn.html in order to calculate the returns online.


What is the formula to calculate the annual return based on the daily return of an investment?

To calculate the annual return based on the daily return of an investment, you can use the formula: Annual Return (1 Daily Return)365 - 1.


How to calculate return on investment for my small business that has only been operational for 1 year.?

In order to calculate return on an investment for a small business which has been operational for one year, you can use an online calculator such as the ones located at www.businessinsider.com/how-to-calculate-a-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:

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