Вы находитесь на странице: 1из 6

Group 1

Return risk
From investopedia
What is a 'Return'
A return is the gain or loss of a security in a particular period.
The return consists of the income and the capital gains relative
on an investment, and it is usually quoted as a percentage.
The general rule is that the more risk you take, the greater the
potential for higher returns and losses.
Return is also used as an abbreviation for income tax return
see 1040 Form.

Read more: Return


http://www.investopedia.com/terms/r/return.asp#ixzz4h29LzoC
k

Follow us: Investopedia on Facebook


Return
BREAKING DOWN 'Return'
While some investors will settle for principal protection, most
investors are in search of return, specifically alpha returns.
Alpha returns are generated when an investment generates
more money than it costs. In general, there are three different
types of return measures: return on investment, return on
equity and return on assets. Each one is essentially calculated
the same way, but the inputs have different labels.

Read more: Return


http://www.investopedia.com/terms/r/return.asp#ixzz4h29PnW
fQ

Follow us: Investopedia on Facebook


Return on Investment
The most common return measure, also referred to as the return on
investment, or ROI, is calculated by dividing the cost of the investment
by the difference between the cost of the investment and the gain on
the investment. It is the most generic way to calculate return and is
the basic formula used to calculate other return measures. For
example, if an investor pays $100,000 for real estate and then sells it
for $110,000, the return is calculated by taking the difference between
$100,000 and $110,000, and then dividing that number by the cost of
the investment, or $100,000. The calculation is $10,000 divided by
$100,000, or 10%.

Read more: Return


http://www.investopedia.com/terms/r/return.asp#ixzz4h29TJ32X
Follow us: Investopedia on Facebook
Return on Equity
Return on equity, or ROE, is another commonly used measure of
return used by those analyzing business performance. In this
case, a companys net income is the gain or loss, and the cost is
the average of the companys equity. ROE is used by investors
looking for a return on the company's equity capital. If a company
makes $10,000 in net income for the year, and the average
equity capital of the company over the same time period is
$100,000, the return on equity is 10%.

Read more: Return


http://www.investopedia.com/terms/r/return.asp#ixzz4h29VMeYt
Follow us: Investopedia on Facebook
Return on Assets
Yet another commonly used measure of return is the return on
assets, or ROA. It is commonly used as a measure of return by
those analyzing financial stocks. In this case, net income is also
the gain, but the investment is the assets of the company. Net
income divided by average total assets equals ROA. For example,
if net income for the year is $10,000, and total average assets for
the company over the same time period is equal to $100,000, the
return on assets is $10,000 divided by $100,000, or 10%.

Read more: Return


http://www.investopedia.com/terms/r/return.asp#ixzz4h29Ye149
Follow us: Investopedia on Facebook

Вам также может понравиться