We were talking about abnormal return in investments
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tallie
Apprentice
Joined: 17 Apr 2005
Posts: 3
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 Posted: 05/21/08 - 09:29 Post subject: |
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| Hi there. My name is James and I would like to ask you something about investments. Couple of evening ago, I was sitting with some friends over dinner. We were talking about abnormal return in investments and I became interested in the subject, though I’m not an investor. Can you tell me what return in investment is and what it depends on? Thank you. |
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skell
Apprentice
Joined: 01 Dec 2004
Posts: 3
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| Posted: 06/19/08 - 22:40 Post subject: |
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| Hi there James. Well, since you’re not an investor, I presume that you’re not quite familiar with those terms. So, I’ll try to give you some basic explanation. In general, return in investments shows you how much profit you can get for your investments. It is different from type to type, and riskier investments have higher ratio. You can also call it rate of profit, it may have more sense. It is usually calculated annually and serves as a ground for taxation. Now, you have several data that show return on investment, but I won’t go into that. Let’s keep it simple. well, I hope that I gave you some valuable information. Take care! |
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