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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.
What else can I help you with?
What is the expected return for asset X if it has a beta of 1.5 the expected market return is 15 percent and the risk free rate is 5 percent?
To calculate the expected return for asset X, we can use the Capital Asset Pricing Model (CAPM): Expected Return = Risk-Free Rate + Beta × (Market Return - Risk-Free Rate). Plugging in the values: Expected Return = 5% + 1.5 × (15% - 5%) = 5% + 1.5 × 10% = 5% + 15% = 20%. Thus, the expected return for asset X is 20%.
How to calculate the expected return and volatility for a portfolio of stocks?
To calculate the expected return of a portfolio of stocks, multiply the expected return of each stock by its respective weight in the portfolio and sum these values. For volatility, first determine the covariance between the stock returns, then use these covariances along with the weights to compute the portfolio's variance, which is the sum of the weighted variances and covariances. Finally, take the square root of the variance to obtain the portfolio's volatility. This process involves using statistical measures such as the mean return and standard deviation of individual stock returns.
What does high CAPM mean?
A high Capital Asset Pricing Model (CAPM) value indicates that an investment is expected to provide a higher return relative to its risk compared to the market. This is reflected in a higher beta, which signifies greater volatility and potential return. Investors may view high CAPM values as a sign of attractive investment opportunities, but they also entail greater risk. Overall, it emphasizes the trade-off between risk and expected return in financial decision-making.
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
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 do you calculate r-r ratio?
The R-R ratio, often used in finance, is calculated by dividing the risk premium of an investment by its expected return. First, determine the risk-free rate (such as the yield on government bonds) and the expected return of the investment. Subtract the risk-free rate from the expected return to find the risk premium. Finally, divide the risk premium by the expected return to obtain the R-R ratio.
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
