An annual return, or annualized return, is a percentage value that tells you how much an investment as increased in value on average per year over a period of time. Annual return can be a preferable ...
When investing, especially in stocks, your returns can fluctuate wildly from year to year. For this reason, knowing an asset's return for a single year isn't too helpful when deciding whether or not ...
In this article, we'll go through: 1. What a cumulative return is and how to calculate it. 2. What the annualized return is, why it comes in handy, and how to calculate it. What is a cumulative return ...
Every thriving business relies on a robust return on investment (ROI) to help gauge whether its investments are yielding a profit. Although you as an individual investor possess shallower pockets than ...
In order to make an educated decision when making any investment, you need to try to determine how much you could make on that investment. It’s also important to know how much you’ve made on the ...
When investors seek to compare the performance of two assets over time, they should look at annualized return. Why this metric, specifically? Because it takes into account asset performance, time and ...
Compound annual growth rate (CAGR) measures the overall investment return over a period of time. To calculate it, you must know the beginning value, end value (or ending balance), and the number of ...
The Rule of 72 is a formula to predict how long it will take to double your investment portfolio, and demonstrates the power of compound growth. While it’s a useful guide for calculating how long it ...
It’s easy to stick money in your retirement fund and forget about it. But that doesn’t mean you should! As important as consistent saving is understanding your rate of return on investment (ROI). If ...