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What is Understanding Investment Returns about?
This document defines and explains different types of investment returns. It discusses return as the gain or loss on a security over a period of time, usually quoted as a percentage. It then explains three common types of return measures - return on investment (ROI), return on equity (ROE), and return on assets (ROA). For each, it provides the formula for calculating it and an example to illustrate how to calculate it. ROI divides the gain by the cost of the investment. ROE divides the company
- Author
- mado
- Language
- EN