Explore BrainMass

Explore BrainMass

    Calculating Investment Returns

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    1: Calculating Investment Returns
    What is the most valid approach to Calculating Investment Returns? Should the same approach be used for every investment type? why or why not?

    2: Cash Dividends
    Do cash dividends have an affect on the return of stock, and will a stock with a stable dividend history have less market volatility than a growth sock? Please support your response.

    © BrainMass Inc. brainmass.com June 3, 2020, 8:16 pm ad1c9bdddf

    Solution Preview

    What is the most valid approach to Calculating Investment Returns?
    Investment returns is expressed as a percentage and is based on the returns over an associated time period.
    This is the return on investment approach and is calculated to measure the performance of one investment over another. For example, a 10 percent ROI annually means that $100 investment would get $10 in one year's time.
    First the amount of total investment, should be written down. For instance if $95 stock was purchased and brokerage paid was $5, then the investment is $100.
    Next the profit associated with the investment is written down. For example if the stock is $110 after one year the profit is $110 less $100.
    Finally the ROI is ...

    Solution Summary

    This answer provides you an excellent discussion on Calculating Investment Returns