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  2. How To Calculate Return on Investment (ROI) - AOL

    www.aol.com/calculate-return-investment-roi...

    The ROI on this antique car is 150%. Using ROI to Compare Future Investments. Calculating ROI on an investment when you know the purchase price and the selling price is a simple exercise.

  3. Modified Dietz method - Wikipedia

    en.wikipedia.org/wiki/Modified_Dietz_method

    The modified Dietz method [1] [2] [3] is a measure of the ex post (i.e. historical) performance of an investment portfolio in the presence of external flows. (External flows are movements of value such as transfers of cash, securities or other instruments in or out of the portfolio, with no equal simultaneous movement of value in the opposite direction, and which are not income from the ...

  4. Expected return - Wikipedia

    en.wikipedia.org/wiki/Expected_return

    The expected return (or expected gain) on a financial investment is the expected value of its return (of the profit on the investment). It is a measure of the center of the distribution of the random variable that is the return. [1] It is calculated by using the following formula: [] = = where

  5. Returns-based style analysis - Wikipedia

    en.wikipedia.org/wiki/Returns-based_style_analysis

    Returns-based style analysis (RBSA) is a statistical technique used in finance to deconstruct the returns of investment strategies using a variety of explanatory variables. The model results in a strategy's exposures to asset classes or other factors, interpreted as a measure of a fund or portfolio manager's investment style .

  6. How Do I Calculate Total Return On Investment? - AOL

    www.aol.com/finance/calculate-total-return...

    Investing is frequently filled with complicated jargon that can make it difficult to understand how your investments are actually performing. The Capital Gains Yield is one of these terms. While ...

  7. Net present value - Wikipedia

    en.wikipedia.org/wiki/Net_present_value

    An NPV calculated using variable discount rates (if they are known for the duration of the investment) may better reflect the situation than one calculated from a constant discount rate for the entire investment duration. Refer to the tutorial article written by Samuel Baker [9] for more detailed relationship between the NPV and the discount rate.

  8. Incremental capital-output ratio - Wikipedia

    en.wikipedia.org/wiki/Incremental_capital-output...

    The Incremental Capital-Output Ratio (ICOR) is the ratio of investment to growth which is equal to the reciprocal of the marginal product of capital. The higher the ICOR, the lower the productivity of capital or the marginal efficiency of capital. The ICOR can be thought of as a measure of the inefficiency with which capital is used. In most ...

  9. Modern portfolio theory - Wikipedia

    en.wikipedia.org/wiki/Modern_portfolio_theory

    Once an asset's expected return, (), is calculated using CAPM, the future cash flows of the asset can be discounted to their present value using this rate to establish the correct price for the asset. A riskier stock will have a higher beta and will be discounted at a higher rate; less sensitive stocks will have lower betas and be discounted at ...

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