Everyone loves seeing growth in their portfolio. However, a good year of investing doesn't necessarily indicate a sound ...

The compound annual growth rate (CAGR) is a variation on the growth rate that is often used to assess an investment’s or company’s performance. The CAGR, which is not a true return rate ...

while the unadjusted estimate is called your nominal rate of return. While the formula is slightly more complicated, there’s a convenient shorthand way of adjusting your return assumption for ...

Financial return is a fairly simple concept, but there are several different ways to measure it. Each type of return below is calculated to include or exclude certain factors. A nominal return is ...

Companies earn in every financial year. But, most investors are oblivious to the real value earned on the investment made. The real rate of return computes those figures, aiding the investor to ...

In most cases, you’ll want to put tax-free municipal bonds (munis) in a taxable account—IRAs and 401(k)s, which grow money ...

‘Yield’ is the annualized rate of return of a bond. They can be of various types such as current yield, yield to maturity, nominal yield. This blog post is an in-depth analysis of nominal ...

To calculate the average rate of return, a business will use the following formula: \(\text{Average rate of return (\%)}=\) \(\frac{\text{Average annual profit (total profit ÷ number of years)}}{\ ...

The total return is calculated using a time-weighted rate-of-return formula. The returns of the individual stocks are calculated using a simple average, excluding dividends. Dividends are included ...

The retiree would consider a good ROI to be a rate of return that generates sufficient ... Let's plug the numbers into the formula: ...

Few people know how to calculate the inflation rate. And while you don’t need to calculate it yourself, it does help to know ...